Foster Children

[Unregistered]

Have 2 foster children placed in client's home. Is the payments from the agency that placed the children considered to be furnished by the children for their support. If so cannot claim them as dependents since they furnish over half their support. However, if considered support from a third party could probably claim them as dependents.

How do you all feel these support payments would be considered?

[Bees Knees]

TTB, page 3-17 under “Support provided by others:” it lists foster care payments.

IRS Pub 501 agrees that foster care payments are considered support provided by the state or agency that placed the child in the home.