child support/foster care situation

[mblatour]

I have a client who has 2 foster children. Their income from the foster care wasn't something they had to previously claim as income. Now as of next week, they'll be receiving child support payments directly from the children's father equal to half the amount they previously received in foster care payments, and the other half will remain foster care payments. Does this change their situation?

They are a low income family and are concerned about losing their EIC next year.

This is a new topic for me so any direction would be appreciated.

[erchess]

The old axiom

is that child support is never deductible to the payer and never taxable to the recipient. I see nothing in this set of facts that would change anything.

[mblatour]

I agree with you.....

but I thought it wouldn't hurt to check on here to see if maybe I was missing something unique about their situation. Thanks for your reply!

[bertrans]

foster children

In addition, support has nothing to do with EIC: the 3 tests are relationship(properly placed foster children qualify)); age and residency.