Both the Senate (on September 22) and House (on September 17) passed legislation that would tighten the Internal Revenue Code definition of a child in order to raise $1.75 billion to pay for new incentives and aid for adoption and foster care programs. The Fostering Connections to Success and Increasing Adoptions Act of 2008 (H.R. 6893) would clarify that for purposes of the definition of dependent, a "qualifying child" must, among other things, be unmarried and younger than the individual claiming a tax benefit. In addition, the bill states that if no parent claims a dependent child then the child may be claimed by another taxpayer under certain conditions. The "qualifying child" definition impacts the taxation of employee benefits, various child and dependent tax credits, and exemptions. President Bush is expected to sign the bill, which would be effective for taxable years after December 31, 2008.

The full text of H.R. 6893 can be found here.

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