Foster Parents Do Not Claim their Monthly Stipend from CPS as Income They Pay No Taxes on This Money
April 7, 2010yvonnemason
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
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:
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).
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.