Submitted By: someone
Answered: January 4, 2019 12:56 am

As a foster parent, are the payments I receive taxable to me?

The tax law allows individuals who receive foster care payments to exclude them from gross income if all three of the following conditions are met: (1) Payments are made pursuant to a foster care program of a State; (2) payments are paid by a State or political subdivision thereof, or a qualified agency; and (3) payments are paid to a foster care provider for the care of a qualified foster individual in the foster care provider’s home.

advertisement
Tax Glossary

Disaster losses

Casualty losses such as from a storm, in areas declared by the President to warrant federal assistance. An election may be made to deduct the loss in the year before the loss or the year of the loss.

More terms