Guardianship

My wife and I became temporary legal guardians (until she is 18) for a 15-year old girl in March of this year. She was living with her grandmother who had full custody of her, until her grandmother died. We have been providing sole support of her since that time.

Because she is unrelated to us, and this was not a permanent legal adoption, can we claim her as a dependent for an exemption this year?

Can we get the Child Tax Credit for her?

Thank you for your help with these questions.

Mr. Adams:

Although it may seem unfair, I don't believe the child qualifies as a dependent. Although a person does not have to be related by blood or adopted to be a dependent, if the relationship test is not met, the person must be a "member of your household" to qualify...and, the law (Code Section 152) holds that to be a member of your household, the child must live with you during the entire year. Thus, although the child does not qualify for 2003, she could qualify next year if she lives with you all year and you continue to provide more than half of her support.

--Kevin McCormally
editorial director
Kiplinger's magazine