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New Member
posted Feb 21, 2021 7:20:51 PM

We are foster parents that provided respite services for a youth in 2020- do we need to claim payments for his care as taxable income?

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1 Replies
Expert Alumni
Feb 22, 2021 6:50:18 AM

Generally, payments you receive from the state or other eligible entity for providing care in your home to a foster child, are considered support for that child. These payments are not included in your income for federal tax purposes. However, if you receive payments to maintain space in your home for emergency foster care, you must include these payments as income for federal tax purposes.