- To qualify as a legal deduction for a host family, a foster child must have been placed in the residence by an authorized social service agency or by order of a court. A foster child lives with persons other than parents and is not legally an adoptee of the host family. While the foster family does not retain legal custody of the child, the official agreement dictates that the child will be fed, clothed and cared for as would any family member.
- To qualify as tax-deductible, a foster child must have resided with the taxpayer's family for more than six months of the tax year, according to WFTRA. This is the same as the eligibility rule for a family's biological children and extends to eligibility for the EITC, CTC, and CCDCE, although taxpayers must meet income and other qualifications as well to claim these tax credits.
- To qualify as a deduction, a foster child must be less than 19 years old at the conclusion of the tax year, a student living at the taxpayer's residence up to age 24, or permanently disabled. In addition, the foster child cannot have earned more than 50 percent of his income for the tax year in which he is claimed as a deduction. Foster children eligible for a CCDCE must be under 13 years of age or permanently disabled.
- To meet IRS eligibility requirements, a foster child must be an American citizen or a national -- a citizen of American Samoa or Swains Islands -- or a resident of Canada, Mexico or the United States.
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