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Per IRC Sec. 131 gross income shall not include amounts received by a foster care provider during the taxable year as qualified foster care payments. The term "qualified foster care payment" means any payment made pursuant to a foster care program of a State or political subdivision which is paid to the foster care provider for caring for a qualified foster individual in the foster care provider's home.
The botXXXXX XXXXXne is if you have had foster children placed with you by a state agency or a state qualified foster care placement agency for which you are paid by the state (or the agency), then such payments are not taxable income.
Because it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.