The Federal Tax Credits Blog

Posts Tagged ‘adoption tax credit ending’

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)

Question: why does child tax credit end when your child is 18 and yet?

a parent is financially responsible until they are 19???

Answer: You’re wrong! It ends when they’re 17.
That’s the Rules.
In most US states, parents are responsible only until 18, not 19.
All games have rules, but they don’t necessarily make sense, but they are the rules of engagement.
You can still claim your child as a dependent through age 18, and even longer if they’re a fulltime student, but you won’t get the child tax credit, after age 17.

Turkey Yields Drop Most Since 2004 on IMF Talks, Tax Cut Report

Dec. 31 (Bloomberg) — Turkish bonds surged, cutting yields the most since 2004, on speculation the government is close to signing an accord with the International Monetary Fund and plans to reduce a tax for domestic investors on bond income.

TAX CREDIT ENDING SOON