Friday, January 15, 2010

What happens when fosterchild biological parent claims they on taxes?

I' am a resourse parent unable to claim fosterchild because biological parent has claim them on their taxes for the whole year, children have not live with parents since they have been placed with me.What happens when fosterchild biological parent claims they on taxes?
Well, you should know what your rights are as a foster parent. If you are legally supposed to claim them then do so, If the biological parent was not supposed to then it will show up down the line and you will be ok. Find out from the IRS. They will tell you.What happens when fosterchild biological parent claims they on taxes?
How long did the child live in your home in 2007? If it was less than half of the year, YOU cannot claim the child. Whether the biological parent can or cannot isn't an issue for you in this case.

If the child lived with you for more than 6 months, meets the age or student requirements and didn't provide more than half of their OWN support then you can claim a foster child under the Qualifying Child rules just as if it was your own child. If this is the case you'll need to file a paper return by mail. The IRS will then investigate the matter and award the exemption for the child according to the law and the evidence provided by both claimants. If you win, the other taxpayer will get a bill from the IRS for the taxes due, plus penalties and interest for late payment.

Note that for the support test, the stipend you receive from the State does NOT count as self-support provided by the child for meeting the support test. It has no affect on your tax return and does not enter into the determination of whether or not you can claim the child on your tax return.
I'm a foster parent who claims my children (I'm also a CPA). For you to claim the child, the child has to have lived in your home for the whole year - this is specifically designated to get an exemption for foster children. If the biological parents claimed them and you had them for the whole year,paper file your return with the correct information, since e-file won't work if the biological family already showed them. Be prepared with documentation to show they were in your house for the whole year. I've never seen the situation occur where someone tried to claim a dependent when another party beat them to the claim, but I wouldn't expect this to be an easy fix, so be prepared for a little bit of letter writing. When this happens with ex-spouses I thought the first spouse had to amend their return, so since you probably can't get cooperation from the biological parents this will probably take some effort.

Follow-up - I was checking up on the six month concept, and when the definitions of qualifying child came out for the 2005 tax year it looks like they got rid of the year requirement and switched to the the same requirements for dependents as natural born children - so the over six month standard does apply, over half the support, etc. I've nver had any problems claiming my foster children, but I've been lucky that their natural parents haven't also tried.
That's a good question. Hmmmm. Whether they claim them or not doesn't matter for you as long as YOU follow the rules.

But I guess you need to get an official answer. Maybe contact a tax expert or IRS directly. You can't both claim them, but who is entitled to claim them? And now you are past APril 15 so if they are already claimed I think that's your bad for beign late.
I assume you are allowed to claim the child.

if this is true, then go ahead and claim the dependent.

if a problem occurs, then you will just have to resolve it. prove the child is really your dependent.

this is not that rare. two or more people claim the same dependent all the time.

once you prove you are the one who is allowed to claim all will be fixed.
How long were they with the parent, and how long where they with you? Whoever they were with for over half the year is allowed to claim them. If they were with you for over half the year, and not with the parent, then claim them but mail in your return.
Why do you need to post this questionf four times?

No comments:

Post a Comment