How to Claim a Foster Child on Taxes Without an SSN

Navigating the complexities of tax filing can be challenging, especially when claiming a foster child as a dependent. This process becomes more intricate without a Social Security Number (SSN) for the child, which the IRS typically requires to claim dependents.

Dependent Criteria for Foster Children

To claim a foster child as a dependent, certain IRS guidelines outlined in IRS Publication 501 must be met. The foster child must reside with the taxpayer for more than half of the tax year to establish that the child is under the taxpayer’s care. Additionally, the child must be under 19 at the end of the tax year or under 24 if a full-time student, with no age limit if permanently and totally disabled. Placement must occur through an authorized agency or court order, distinguishing a foster child from other dependents.

The taxpayer must also provide more than half of the child’s total financial support, including expenses like food, housing, clothing, education, and medical care. Keeping detailed records of these expenses is crucial to substantiate the claim if the IRS conducts an audit.

Obtaining a Temporary Tax ID

If an SSN is unavailable, foster parents can apply for an Individual Taxpayer Identification Number (ITIN) for the child. An ITIN acts as a substitute for an SSN for individuals ineligible for one. To apply, foster parents must complete Form W-7 and provide documentation verifying the child’s identity and, if relevant, foreign status.

Documentation for Form W-7 may include original or certified copies of birth certificates, medical records, or school records, depending on the child’s age. Submitting these documents with the tax return can expedite the process. Starting the application early in the tax year helps ensure the ITIN is received in time for filing.

The IRS generally takes six to eight weeks to process ITIN applications. Foster parents should monitor IRS correspondence and be ready to provide additional documentation if requested. Filing returns early allows time to address any delays in the ITIN process.

Filing Without a Child’s SSN

When filing taxes without a foster child’s SSN, foster parents can include a completed Form W-7 with their tax return. This form serves as a placeholder until the ITIN is processed.

Including a brief explanation with the return about the missing SSN and the steps being taken to resolve the issue can help prevent delays. Foster parents should also maintain communication with the IRS to address any potential complications. The IRS may provide additional instructions or resources to assist in the process.

While awaiting the ITIN, foster parents should explore other tax benefits associated with having a dependent. Credits like the Child Tax Credit or the Earned Income Tax Credit can significantly reduce tax liability or increase refunds. However, these credits have specific requirements, and taxpayers should ensure compliance with the latest tax laws to maximize benefits.