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 who was born within the tax year; caregivers will need to check with their tax advisor in these situations.
Staff should quickly process the application for a newborn or infant's social security number (SSN) as quickly as possible when the child enters care if one has not already been issued. Staff will provide a child's SSN when requested by the caregiver for tax purposes. A written request from the caregiver is not necessary.
Please remember that staff cannot provide tax advice to caregivers.
Internal Revenue Service (IRS) - 1-800-829-1040 or www.irs.gov. IRS publication 501 provides information on exemptions related to dependents and qualifying children.
DCYF Finance Office, Tax Desk - (833) 725-3502 or firstname.lastname@example.org, can help providers and vendors with:
- Requests for copies of tax documents sent by DCYF to the provider.
- Address changes.
- Adjusting tax documents to reflect repayment of overpayments.
- IRS correspondence the provider has received about DCYF payments.