IS FOSTER INCOME TAXABLE?
Payments received for providing foster care in your home are NOT considered taxable income so you do not have to report it as such.
According to the Turbo Tax website: “if care is provided to a qualified foster individual and they are paid by a state or qualified agency, foster care payments are NOT considered taxable income and are NOT included on tax return.”
These payments include those received from a state or local government or from a qualified foster care placement agency.
CAN I CLAIM FOSTER CHILDREN ON MY TAX RETURN?
Only if the child has lived with you for over 6 months (6 months plus 1 day)
A foster child does not have to be in the foster parent’s home at the end of the year to be claimed.
IMPORTANT: Only one person can claim the same child.
TIP: Foster parents can avoid IRS problems by filing their tax return as soon as possible in the event that birth family incorrectly claims a child. The IRS will immediately deny a claim if a child has…
This is only a snippet of a Foster Parents Article written by Penelope
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