Tax Type
Individual Income Tax
Description
Permanent foster care placement deduction; Child living with grandparents
Topic
Taxable Income
Date Issued
09-30-1994
September 30, 1994
Re: Request for Ruling: Virginia Individual Income Tax
Dear**********
This will reply to your letter to ****** concerning the foster parent subtraction on the 1993 Virginia Income Tax Return.
You noted in your letter that you provide the total support for your grandson, who was placed in your home by his parents for the entire year. You claimed him as a dependent on your federal income tax return, received no public or private support for his care, and want to know if you qualify to claim the $1,000 foster parent subtraction.
Code of Virginia §58.1-322(D)(4), copy enclosed, provides a $1,000 subtraction for each child living for the whole year in a home under permanent foster care placement. Generally, Code of Virginia §63.1-195, copy enclosed, defines permanent foster care placement to mean a home in which a child is placed by a child placement agency, until the child is eighteen years old.
Although I sympathize with your situation and commend you for your efforts, since your grandson was placed in your home by his parents instead of a child placement agency, the department has no legal authority to grant you the $1,000 subtraction. If you need other assistance, please contact the department.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/7859N
Rulings of the Tax Commissioner