dependents? again

[MargaretMort]

Okay, I am revisiting the dependency of the two little children who are in the court ordered custody of my clients-the children's mother is the step-cousin of the client. I am assuming the clients cannot also take the Child Tax Credit because there is no blood relationship and they are not foster children. Please tell me if I am correct or not.

Thanks.

[RoyDaleOne]

See:

http://www.irs.gov/newsroom/article/0,,id=133298,00.html

In general, to be a taxpayer’s qualifying child, a person must satisfy four tests:

1. Relationship — the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these.

2. Residence — has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.

3. Age — must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.

4. Support — did not provide more than one-half of his/her own support for the year.

Eligible Foster Child – Eligible foster child. An eligible foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.

If, these tests are met then the child is a qualifying child.

[MargaretMort]

Thanks. I guess it is the fact that I thought the state paid people who take in Foster children, not happening in this case, and that the court order doesn't state they are in foster care. Obviously I have had no practical knowledge about this. Helps to have others clarify my thinking. MM

[RoyDaleOne]

Sounds like an extended family member was willing to step up and take custody of the children without the need to have the State help. If that was the case then the Court Order was needed for legal reasons and therefore your client wins.