Taxes and Child Credit

I just completed the H&R Block tax course so I will do my best in answering your question. There are new laws this year regarding "uniform definition of a child". You have to meet 4 tests in order for your child to be considered a "qualifying child". 1. Relationship. (son, daughter, stepson, stepdaughter, or decsendant thereof, adopted child or descendant thereof, brother, sister, foster child, placed by authorized agency, brother, sister, half brother, half sister, stepbrother, stepsister or descendant thereof). If your child was placed in your home by an authorized agency, the child would qualify as a foster child, since the adoption is not yet final. If no authorized agency placed the child, the child would not meet the relationship test. 2. Age. Child must be under age 19 (or 24 and a full time student). 3. Residency. Child must live in the same household as the taxpayer for more than half the year (unless away at college or some other approved absence) 4. Support. Child could not have provided more than half of his or her own support. Based on the above, I do not believe your child meets the residency requirement for qualifying child. You could definitely claim this child next tax year, though. Hope this helps.

Hi again. I looked up some more info and found an example in my book that is just like your situation. Assuming your child was placed by an authorized agency and is a U.S. citizen, your child will qualify as a "qualifying relative" so you can claim him as a dependent. Because he is not a qualifying child, you cannot claim the earned income credit or child tax credit but you will still get the exemption.

Thanks. That's very helpful. When we send our tax stuff to our accountant I want all the ducks to be in a row.