Foster parents and kinship caregivers may claim a tax deduction on certain foster care payments for children who have been placed in their care for more than half of the tax year. Exceptions apply for a foster child born within the tax year; caregivers will need to check with their tax advisor in these situations.
Staff should process the application for a newborn or infant’s social security number (SSN) as quickly as possible if one had not already been issued. Staff must provide a child’s SSN when requested by the caregiver for tax purposes. A written request from the caregiver is not necessary. This year, it is critical to give caregivers the necessary information so they can claim foster children, if allowable, as 2021 tax filings will likely be used to determine who should receive a stimulus payment should additional stimulus be issued during 2022.
Please remember that staff cannot provide tax advice to caregivers.
- The Internal Revenue Service (IRS) 1-800-829-1040 or at irs.gov IRS publication 501 provides information on exemptions related to dependents and qualifying children.
- The DCYF Finance Office, Tax Desk (833) 725-3502, or email@example.com can help providers and vendors with:
- Requests for copies of tax documents sent by DCYF to the provider
- Adjusting tax documents to reflect repayment of overpayments
- IRS correspondence the provider has received about DCYF payments