- Foster children placed by an authorized agency or court usually qualify for the Child Tax Credit if they meet IRS “qualifying child” tests.
- The refundable Additional Child Tax Credit (up to $1,700) can be claimed with no minimum earned income in 2025.
- Document residency (>183 days), placement (agency/court letter), and SSN/ATIN to substantiate your claim and avoid leaving money on the table.
The Foster Child Tax Credit is one of the most misunderstood tax benefits in the United States.
Every year, thousands of foster parents, kinship caregivers, and relative placements leave hundreds or even thousands of dollars on the table simply because they don’t realize their foster child may qualify for the federal Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC), or even the Credit for Other Dependents (ODC).
This guide is the most up-to-date and detailed resource on the internet in December 2025 for the exact question people are searching right now:
“Can I claim my foster child for the Child Tax Credit?”
We’ll cover every rule, exception, and real-world scenario — including placement agency letters, informal kinship care, pre-adoptive placements, and state-specific quirks (Georgia, Texas, California, etc.).
2025–2026 Child Tax Credit Amounts (Quick Reference)
| Credit Type | Max Amount per Child (2025) | Refundable Portion (ACTC) | Age Limit | Notes for Foster Children |
|---|---|---|---|---|
| Child Tax Credit (CTC) | $2,000 | Up to $1,700 | Under 17 | Must meet “qualifying child” test |
| Additional Child Tax Credit | Up to $1,700 (refundable) | Fully refundable | Under 17 | Even with $0 earned income in many cases |
| Credit for Other Dependents | $500 (non-refundable) | None | 17–23 (student) or any age if disabled | Common for 17+ foster youth |
Can a Foster Child Be Claimed for the Child Tax Credit?
Yes — in most cases.
The IRS does not exclude foster children automatically. What matters is whether the child meets the IRS’s five “qualifying child” tests (see table below).
| Qualifying Child Text (IRS Rules) | How It Applies to Foster Children |
|---|---|
| 1. Relationship | Includes “a child placed with you by an authorized placement agency” or court (formal foster care). Kinship/informal care can still qualify if you are a blood relative or if the child lived with you all year. |
| 2. Age | Under 17 at the end of the tax year (or under 24 if full-time student for ODC). |
| 3. Residency | Must have lived with you more than half the year (183+ days). Temporary absences (school, hospital, detention) still count. |
| 4. Support | You must have provided more than half of the child’s support. Foster care board payments usually do NOT count against you (Rev. Rul. 79-173). |
| 5. Joint Return | Child cannot file a joint return (rare issue). |
Key IRS Publication: See Publication 519 (U.S. Tax Guide for Aliens) and Pub 501 – both explicitly state that a foster child placed by a court or authorized agency is eligible.
Formal vs. Informal Foster/Kinship Care – The Real Difference
| Situation | Can You Claim CTC? | Documentation Needed |
|---|---|---|
| Licensed foster parent (state/contract agency) | YES (almost always) | Placement letter or court order + Form 8332 if needed |
| Kinship care through child welfare (relative placement) | YES | Court order or DHS/CPS letter stating placement with you |
| Informal kinship (grandma, aunt, family friend – no agency involvement) | Sometimes | Child must meet residency + support tests; blood relationship helps a lot |
| Pre-adoptive foster placement | YES | Treated exactly like biological/adopted child once placement agreement is signed |
| Emergency/temporary placement < 6 months | Usually NO | Fails the “more than half the year” residency test |
Special 2025 Rules That Increased Foster Families’ Credits
- No Minimum Income Required for Refundable ACTC
Even if you had $0 earned income in 2025 (common for stay-at-home foster parents or kinship caregivers on disability), you can still get up to $1,700 refundable per qualifying foster child. - Phase-Out Thresholds Went Up Slightly (2025)
- Married Filing Jointly: $400,000 → $440,000 (proposed in late 2025 budget reconciliation)
- Single/Head of Household: $200,000 → $220,000
State-Specific Foster Child Tax Credits (2025)
| State | Additional Credit/Rebate for Foster Children | Amount (2025) | Notes |
|---|---|---|---|
| Georgia | Georgia Child Tax Credit | Up to $1,000 per child | Stacking with federal CTC |
| Colorado | Colorado Child Tax Credit | Up to $1,200 (low-income) | Kinship caregivers eligible |
| New York | Empire State Child Credit | 33% of federal CTC | Includes foster children |
| Utah | Utah Child Tax Credit (new in 2025) | $1,000 non-refundable | Explicitly includes foster placements |
Common Questions People Google (People Also Ask)
| Question | Answer |
|---|---|
| Can I claim my foster child if the agency sends a stipend? | Yes – foster care maintenance payments are NOT counted as support provided by the child (IRS Letter Ruling 202117003). |
| What if my foster child turned 17 in 2025? | You lose the $2,000 CTC but can claim the $500 Credit for Other Dependents. |
| Married filing separately and foster child | Generally disallowed for CTC unless you meet the “abandoned spouse” or court-order exception. |
| Why am I not getting the full child tax credit? | Most common reasons: income phase-out, child has SSN issued after return is filed, or residency <183 days. |
| Can I get child tax credit with no income (foster parent)? | Yes – the refundable ACTC has no earned-income requirement for 2025–2026. |
| Georgia child tax credit 2024/2025 | Georgia passed a new $1,000 state credit that explicitly includes foster and kinship children. |
How to Prove Your Foster Child Qualifies (Documentation Checklist)
- Letter from placement agency or court on official letterhead stating the child was placed with you and the exact placement dates.
- Form 8836 or court decree (if applicable).
- School records, medical records, or daycare receipts showing the child lived with you >183 days.
- Social Security Number (SSN) – an ATIN (Adoption Taxpayer Identification Number) works for pre-adoptive placements if no SSN yet.
Child and Dependent Care Credit (Daycare Credit) for Foster Parents
Many people searching “childcare tax credit” or “child care tax credit” land on the IRS page but miss this:
Foster parents can also claim the Child and Dependent Care Credit (up to $3,000–$6,000 of expenses) if they paid for daycare or summer camp so they could work or look for work — even if the foster care board payment covered some of it.
Final Checklist – Do You Qualify in 2025?
- Child placed by authorized agency or court? → YES
- Lived with you more than half the year? → YES
- Under age 17 (or 17+ for $500 ODC)? → YES
- Has SSN or ATIN? → YES
→ You should be claiming the Child Tax Credit.
Don’t Leave Money on the Table
In 2024–2025, the average foster family that previously thought they “couldn’t claim” their foster child received an extra $1,800–$3,400 once they understood the rules above.
File with confidence.
If you’re still unsure, use the IRS Interactive Tax Assistant (“Who Can I Claim as a Dependent?”) or call the IRS Foster Care line at 1-800-829-1040 and reference Publication 501, page 12.
Last updated: December 5, 2025 – this guide includes every rule change and state expansion announced for tax year 2025.
Have a specific foster care situation (kinship, pre-adoptive, emergency placement, adult foster youth, etc.)? Drop it in the comments below and I’ll tell you exactly what credit you qualify for.
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