Foster Care? Claim the Exemption?

[zeros]

Client has taken in two children for foster care. They are paid from the county for their support. Client wants to put away that money for the children's future and he would support them solely. Would this clear the way for him claiming the children as dependents?

[Gretel]

Client has taken in two children for foster care. They are paid from the county for their support. Client wants to put away that money for the children's future and he would support them solely. Would this clear the way for him claiming the children as dependents?

Unless there is an exception for foster children that I am not aware of I would say yes. The question I have is if they lived with the client all year.

[Gene V]

Yes

Client has taken in two children for foster care. They are paid from the county for their support. Client wants to put away that money for the children's future and he would support them solely. Would this clear the way for him claiming the children as dependents?

You can claim them as dependent, if they did not provide over half of their own support.
The payment you receive for their support from the county or state are considered support provided
By the agency. Not by the child.

See Pub. 17 page 29 and 34

[mastertaxguy]

Foster children

Might also take a look at a well known tax reference tool, commonly known as The Tax Book, page 3-18, left column, middle of the page.

[Bees Knees]

Might also look at TTB page 5-19.