Questions & Answers

Who is a foster child for purposes of the Indiana Earned Income Credit?

Indiana's foster child definition is different from the federal foster child definition.

For Indiana, a foster child is the following:

  • Any child you cared for as your own child and who is (a) your brother, sister, stepbrother, or stepsister; (b) a descendant (such as a child, including an adopted child) of your brother, sister, step-brother, or stepsister; or (c) a child placed with you by an authorized placement agency. For example, if you acted as the parent of your niece or nephew, this child is considered your foster child.
  • AND
  • The qualifying foster child must live with you for the entire year (except for temporary absences).

Example 1:
Your 12 year-old brother lived with you the entire year. If you are eligible to claim him as a qualifying child for federal Earned Income Credit (EIC) purposes, then you are eligible to claim him for Indiana EIC purposes.

Example 2:
The facts are the same as in Example 1, but your brother lived with you for seven months during the year. Even though you may be eligible to claim him as a qualifying child for federal EIC purposes, you are not eligible to claim him for Indiana EIC purposes as he did not live with you the entire year.

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