Adoption Tax Credit Ending
May 31st, 2010
Question: Tax question in regards to foster care / adoption?
I keep getting mixed answers so I’m confused. We have custody of a child that is in foster care. We will have had custody for over a year by the end of ‘08. We are in the process of adoption. My question is- can we claim the child for the ‘08 tax period? The adoption is expected to go through in early ‘09. Are there any tax credits for adoption? Thank you in advance.
Answer: A foster child placed by the State or a State authorized placement agency is treated as your natural child for tax purposes. Since the child will have lived in your home for more than 6 months at the end of 2008, you can claim the child under the Qualifying Child rule as long as the CHILD did not provide more than half of their OWN support and meets the age requirements, i.e. under age 19 or under 24 if a full time student.
The stipend you receive from the state is not taxable income to you and is not treated as self-support provided by the child. It has no affect on your tax return at all.
Contrary to what another poster seems to think, the child is NOT the “dependent” of the State. Legal custody has never been a requirement under the Tax Code.
OmniVision Reports Financial Results for Fourth Quarter and Fiscal 2010
SANTA CLARA, Calif., May 27 /PRNewswire-FirstCall/ — OmniVision Technologies, Inc.
Senate Session 2010-04-19 (15:56:28-16:47:53)
Posted in 
Tags: