Foster care payments are non-taxable. Do not enter the 1099-Misc if you receive one.
Internal Revenue Bulletin: 2014-4
Section 131(a) excludes qualified foster care payments from the gross income of a foster care provider.
Section 131(b)(1) defines a qualified foster care payment, in part, as any payment under a foster care program of a state or a political subdivision that is either (1) paid to the foster care provider for caring for a qualified foster individual in the foster care provider’s home, or (2) a difficulty of care payment.
