Am I required to have my foster/adopted child’s Social Security number before I file?
Yes, you must have a Social Security number for all dependents including children born during the tax year.
How do I get the Social Security number for my foster/adopted child?
You should contact your Social Worker for this information. He or she should be able to obtain this for you.
I’ve only had my foster child for 4 months, can I still claim her/him as a dependent?
No, the child must live with you for more than 6 months (183 days) or she does not qualify. The only exceptions are for children who are born or die during the year. See the "Qualifying Child" test for more information. You should contact your tax professional to help you make this determination.
Can I take the expenses I’ve incurred to become a foster parent and to furnish my house appropriately as a tax deduction?
Expenses incurred over the amount of reimbursement received may be taken as a charitable contribution. You should contact your tax professional for more information as there are a number of criteria to meet for deductibility.
I am claiming the Adoption Credit and the instructions say I must attached documentation. What is required to be attached to my return?
You must attach a copy of the Adoption Order to include the signature page and the court seal. You must also provide a Determination of Special Needs, if you are claiming a special needs child.
What is a “Determination of Special Needs”?
There is little guidance on this currently; however, we are told that when DSHS provides the copy of the family’s agreement there is a letter that begins “Enclosed is a copy of your signed agreement…” The last paragraph of that letter contains language indicating that the child(ren) is(are) determined as being “special needs”. If you have kept a copy of that letter, attach that to your form.