What qualifies as an eligible foster child?

An eligible foster child is specifically defined as a child who has been placed with the taxpayer by an authorized placement agency or through a court order. This definition emphasizes the formal arrangement and the legal basis of the placement, which is essential in qualifying for various tax benefits related to foster care. The involvement of an authorized agency or the court signifies that the placement is recognized and sanctioned, differentiating foster children from those who might simply be living with family members or friends without official oversight or approval.

The other options do not meet the specific criteria for qualifying as an eligible foster child. A child with no parents, for instance, may not automatically meet the requirements for foster care designation, nor does a child living with a relative necessarily qualify if the arrangement doesn’t involve formal placement by authorities. Similarly, being under the age of 18 alone does not make a child qualify as a foster child without the context of a formal placement arrangement. Therefore, the requirement of a legal placement process is what confirms a child's status as an eligible foster child for tax purposes.