Can Bio Parents Claim Foster Child As Dependent?
Can Bio Parents Claim Foster Child As Dependent?
Navigating the intersection of tax law and the foster care system can be a complex challenge for both biological parents and resource families. In 2026, the Internal Revenue Service continues to apply strict criteria to determine who has the legal right to claim a child as a dependent. While the primary goal of the foster system is often reunification, the financial implications of tax credits and exemptions are governed by specific residency and support tests. Understanding whether a biological parent can claim a foster child as a dependent requires a close look at the child's living situation and the duration of their placement during the calendar year.
The IRS Residency Test and the Six Month Rule
The most critical factor in determining dependency is the residency test. According to IRS guidelines, for a child to be considered a qualifying child of a taxpayer, they must live with that taxpayer for more than half of the year, which equates to at least 183 nights. If a child is removed from the biological home and placed in foster care for more than six months, the biological parents generally lose the ability to claim the child for that tax year. However, if the child was only in foster care for a few months and lived with the biological parent for the majority of the year, the biological parent may still meet the residency requirement.
Tie-Breaker Rules for Competing Claims
Situations often arise where both the biological parent and the foster parent technically meet the requirements to claim the child, particularly in years where the placement occurred exactly mid-year. In these instances, the IRS uses "tie-breaker rules." Generally, biological parents are given priority over non-parents if they meet the residency test. If a child lived with their biological parent for seven months and a foster parent for five, the biological parent holds the legal right to the claim. If the child lived with both for exactly six months, the individual with the higher adjusted gross income (AGI) may sometimes be the deciding factor, though parentage usually wins out in direct conflicts.
| Criteria for Claiming | Requirement Details |
|---|---|
| Residency Test | Child must live with the claimant for more than 183 nights of the year. |
| Support Test | The child cannot provide more than half of their own financial support. |
| Relationship Test | Claimant must be a parent, eligible foster parent, or specific relative. |
| Legal Placement | Foster placement must be via a court order or authorized agency. |
Financial Support and Government Subsidies
Another layer of complexity involves the support test. To claim a child, the taxpayer must ensure the child did not provide more than half of their own support. It is important to note that foster care payments or subsidies provided by the state are not considered support provided by the foster parent, but they also do not count as the child providing for themselves. This means that even if the state provides the majority of the financial resources for the child's care, the residency test remains the primary hurdle for biological parents seeking to claim the child as a dependent.
FAQ about Can Bio Parents Claim Foster Child As Dependent?
If my child is in foster care for 5 months, can I still claim them?
Yes, if the child lived with you for the other 7 months of the year and you meet the other IRS criteria, you typically maintain the right to claim them as a dependent because you pass the residency test of more than half the year.
What happens if both the bio parent and foster parent claim the child?
The IRS will apply tie-breaker rules. Usually, the person with whom the child lived the longest wins. If the child lived with both for an equal amount of time, the biological parent usually takes precedence over a foster parent.
Do I need my child's Social Security number to claim them?
Yes, you must have a valid Social Security number for the child to include them on your tax return. Biological parents usually have this, while foster parents must often obtain it through a caseworker.
Conclusion
Determining whether biological parents can claim a foster child as a dependent ultimately hinges on the calendar. The IRS is rigid regarding the 183-day residency requirement. While biological parents have priority in tie-breaker scenarios, they must have physically shared a home with the child for the majority of the tax year to qualify. Because tax laws can be nuanced and subject to change, it is always advisable for both biological and foster parents to consult with a tax professional to ensure they are filing correctly and avoiding potential audits or rejected returns.