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.

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Tax Glossary

Community income

Income earned by persons domiciled in community property states and treated as belonging equally to husband and wife.

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