The IRS requires that to claim the child as a dependent and for child care credit that the child be a qualifying child. To have this status in your case, the child must be a son, daughter, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew. It would seem that "foster child" would fit your situation. A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Assuming you meet the foster child test, the support test, and that the child earns less than $3,500, and the other related IRS tests you can claim the child as a dependent. You might be able to also claim the child fro the child care credit if you meet those tests. For more details, see the IRS filing instructions for Form 1040 and the section for dependent. It gives the detailed tests for dependency and for the child care credit.
Hope this helps.
Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.
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