Home > Tax Credits for Stolen Children > Foster Parents Do Not Claim their Monthly Stimed from CPS as Income They Pay No Taxes on This Money

Foster Parents Do Not Claim their Monthly Stimed from CPS as Income They Pay No Taxes on This Money


Autumn Destiny DeShawna Thomason, Carly and Sara Louvelle Texanna Wilfawn these are the children Donna the Foster Care Provider is Making a killing off of.

Child Protective Services are not the only ones making a killing off the backs of our children in violaton of the 13th Amendment that “No Man shall be enslaved”- but so are the Foster Care Providers. The information I pulled is directly from the IRS Site. The Monthly income that the Foster Care Provider collects each month off the backs of my three grandchildren Autumn Destiny DeShawana Thomason, Carly and Sara Wilfawn which comes to at least $1000.00 per month for the three of them is not and I repeat NOT included as income for that Provider. Donna the Foster Care Provider does not have to claim it either on the state level or the Federal level. So just for the sake of this discussion let’s say she gets 416.00 for the baby per month ,and 471. 00 for the two older girls. This is the going rate in Georgia for foster kids. This does not include the stimed she gets because she has put the oldest girl on drugs or the stimed she gets because they are siblings. Nor the stimed she gets twice a year for a clothing allowance, or their medicad- reduced lunches, eye care and dental care. Her income for the month is 1,358.00 for the year it is 16,296. and let’s just say she has three other children who are in foster care. That is another $12,000.00 so a total of $28,296.00 has been given to that Foster Care Provider and it is free money. She doesn’t have to claim it as income. Plus and here is the best part. The foster children are allowed to be claimed as dependants and they may also qualify for the Child Tax Credit and maybe even the earned income credit.

My grandchildren are the cash cow for this foster care provider. My grandchildren could be with their mother – if $13,296 had been re-routed to her instead of the Foster Care Provider. What if DFCS had helped provide her housing under the Section 8 funding and if she had help with child care- this would solve the problem they say they have – Why pay strangers when that money could go to Samantha? The reason no bonuses for DFCS when they terminate the rights of the parent and adopt out the girls. This is a clear violation of the 13th Amendment. It is so balant it is almost funny! No wonder the Foster Care Provider can afford to take the family to Myrtle Beach all the time and forces Sam not to be able to see her girls. They are footing the bill for the trip.
I included below the direct quote from the IRS as well as their website.

Foster care providers. Payments you receive from a state, political subdivision, or a qualified foster care placement agency for providing care to qualified foster individuals in your home generally are not included in your income. However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulty-of-care payments.

A qualified foster individual is a person who:
Is living in a foster family home, and

Was placed there by:

An agency of a state or one of its political subdivisions, or

A qualified foster care placement agency.

A “Qualifying Child”

FS-2005-7, January 2005

Uniform Definition
A “qualifying child” may enable a taxpayer to claim several tax benefits, such as head of household filing status, the exemption for a dependent, the child tax credit, the child and dependent care credit and the earned income tax credit. Prior to 2005, each of these items defined a qualifying child differently, leaving many taxpayers confused.

The Working Families Tax Relief Act of 2004 set a uniform definition of a qualifying child, beginning for Tax Year 2005. This standard definition applies to all five of the tax benefits noted above, with each benefit having some additional rules.

In general, to be a taxpayer’s qualifying child, a person must satisfy four tests:

Relationship — the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these.
Residence — has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.
Age — must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.
Support — did not provide more than one-half of his/her own support for the year.
If a child is claimed as a qualifying child by two or more taxpayers in a given year, the child will be the qualifying child of:

the parent;
if more than one taxpayer is the child’s parent, the one with whom the child lived for the longest time during the year, or, if the time was equal, the parent with the highest AGI;
if no taxpayer is the child’s parent, the taxpayer with the highest adjusted gross income (AGI).
Additional Rules
While the four qualifying child tests generally apply for the five tax benefits noted above, there are some additions or variations for particular provisions:

Dependent — a qualifying child must also meet these tests:

Nationality — be a U.S. citizen or national, or a resident of the U.S., Canada or Mexico. There is an exception for certain adopted children.
Marital status — if married, did not file a joint return for that year, unless the return is filed only as a claim for refund and no tax liability would exist for either spouse if they had filed separate returns.
Head of Household Filing Status — a qualifying child is determined without regard to the exception for children of divorced or separated parents. Also, a qualifying child who is married at the end of the year must meet the marital status and nationality tests for a dependent (above).

Credit for Child and Dependent Care Expenses — a qualifying child must be under the age of 13 or permanently and totally disabled. A qualifying child is determined without regard to the exception for children of divorced or separated parents and the exception for kidnapped children.

Child Tax Credit — a qualifying child must be under age 17 and a U.S. citizen or national or a U.S. resident.

Earned Income Tax Credit — a qualifying child does not have to meet the support test. Also, a qualifying child must have lived with the taxpayer in the United States for more than half the year and have a social security number that is valid for employment in the United States. A qualifying child is determined without regard to the exception for children of divorced or separated parents. If a qualifying child is married, he or she must also meet the marital status and nationality tests for a dependent (above).

Changes to Certain Benefits
The new law does not change the operation of the Child Tax Credit, but it does affect these benefits:

Dependent — There are two types of dependents, a qualifying child and a qualifying relative. The five dependency tests — relationship, gross income, support, joint return and citizenship/residency — continue to apply to a qualifying relative. A child who is not a qualifying child might still be a dependent as a qualifying relative. If you are a dependent of another person, you cannot claim any dependents on your own return. .

Head of Household Filing Status — A taxpayer is eligible for head of household filing status only with respect to a qualifying child or the taxpayer’s dependent. But the taxpayer cannot file as head of household for a person who is a dependent only because he or she lived with the taxpayer for the whole year or because the taxpayer may claim him or her as a dependent under a multiple support agreement.

Child Tax Credit — The taxpayer is no longer required to care for a foster child, sibling, or sibling’s descendant as one’s own child.

Credit for Child and Dependent Care Expenses — The taxpayer is no longer required to pay over half the costs of maintaining a household for the qualifying individual. But, an individual who is not a qualifying child must have the same principal residence as the taxpayer for more than half the year.

Earned Income Tax Credit — The taxpayer is no longer required to care for a foster child, sibling, or sibling’s descendant as one’s own child.

http://www.irs.gov/publications/p17/ch12.html#en_US_publink1000172048

  1. Joshua
    April 11, 2010 at 2:40 pm

    There is a dearth of information regarding the adoption subsidies / stipends available for foster parents online. There is even less information on the total income and the sources of the income a “professional” low-income foster parent receives. In your next post, could you find and post the monthly compensation foster parents receive and/or compensation/tax credits they receive for adopting accompanied by references? For select states, you could do what you did in this post, but use actual numbers with a test family. Say a low-income family of 7 in PA with 4 foster children and 3 own children would receive adoption credits, cash assistance, food stamps ($1052 max/month), home heating assistance (LIHEAP), free school meals, medical assistance, tax refunds etc.

    • Joshua
      April 11, 2010 at 2:42 pm

      Joshua :

      In your next post, could you find and post the monthly compensation foster parents receive and/or compensation/tax credits they receive for adopting accompanied by references?.

      for each state.

    • April 11, 2010 at 6:55 pm

      Joshua I will be happy to see what I can find out for you.

  2. mommyoffour
    September 23, 2010 at 5:19 pm

    maybe instead of spending so much of your time researching what a foster care parent earns and whether or not they pay taxes, we should be educating parents that are at high risk of having their children placed in foster care. I am a single mother of two and also the foster parent of my two nephews. I think your under the impression that this an easy venture, that this task is an easy one. We as foser parents are trying our best to care for these children, educate them, get them the help they need in all aspects of their life, such as dental, medical, emotional and mental.. A lot happens to a child when they are taken away from their family, it is very hard on them. Have you tried to have them in your home? You can get help financially with that as well and I believe that its best for the children to stay with family anyway. My point is that there is so much more involved with this than money and taxes. Thank god for these foster parents or these kids would end up in facilities and maybe even homeless. I work full time and pay taxes like everyone else and I’m sure there are a lot of foster parents that do it for another reason other than to love and care for them but why is this what you find most important in the matter of your grand children being in foster care. God bless you all, and I wish you and your grand children the best. Take care.

    • sandy
      May 26, 2013 at 6:37 pm

      i feel that people need to know the facts, it takes insurance and medical to care for children. as a foster parent you want to give them what they need, love care and be able to get them the things that will help them grow, as the parents i know they are given many chances drug classes ect… also she is a grandmother most likely on a fixed income and needs the help to raise the kids. medicare does not cover kids. maybe she wants them but needs to know if their is help out there to give them the best she can.

    • Singleprovider
      December 21, 2013 at 4:48 pm

      I agree with you! I am a single provider that works full time with children with special needs and have been a therapeutic/regular foster parent for 6 years now. Let me tell you “It is not easy”. By the time the children get to us they have been from placement to placement. What I am trained to do is teach the children how to cope with trauma. Loving these kids and showing them a positive side of life is also a part of the process. I have taken in children that have had no family and have helped to raised them. Yes, we are reimbursed and the insurance does help but the fact is that most of these children are on very expensive medications when they come into our home for one reason or another. The fact is that we DO NOT and CAN NOT get food stamps. The fact is that $150.00 dollars for clothing/books twice a year does very little for the child. It is very interesting to me that the finger is always pointed at the foster parents. I went into foster care at the age of 24 because I worked at a large facility that is a group home, school, and shelter. Once I found that these places don’t really care about the children (as I got very attached to my kids there) I decided that I needed to do something to help these young men succeed once leaving places like this. To help these young men enjoy what is left of there childhood or teenage years before being forgotten about at age 18 as they normally are. I owned a house and a car and so I had extra room. The great thing is that even as adults MY KIDS still call and come and visit me as they are still apart of my family. Now, are there foster parents with bad intentions? Certainly, just as there are bad police officers, CPS workers, Judges, politicians, and bio parents. But please don’t group us in together, as I work hard and have dedicated my life to helping children succeed.

      As far as being a grand parent, I know that here in Arizona that you can take classes to be foster parent. This foster care is called Kinship care, hopefully if you wanted or could get your grandchildren with the same benefits as far as insurance and reimbursement. This helps but you will surely still need a second income to help out.

  3. mommyoffour
    September 23, 2010 at 5:20 pm

    That got a little long winded and off track, I apologize. It just struck me as bizarre that this was even on here.

  4. December 1, 2010 at 1:11 am

    I usually don’t post in Blogs but your blog forced me to, amazing work.. beautiful …

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