topic Received a 1099 Misc for respite care for a foster child, is this taxable income? in Get your taxes done using TurboTax

Received a 1099 Misc for respite care for a foster child, is this taxable income?

gregorys5 — Tue, 04 Jun 2019 19:27:38 GMT

My daughter and I both have a child from one family that we are foster parents for. We both received respite care for these two kids and received a 1099 Misc but I just read that this is not taxable income. So is it?

No, foster care payments aren't considered taxable income...

JohnW15 — Tue, 04 Jun 2019 19:27:39 GMT

No, foster care payments aren't considered taxable income, and aren't included on your tax return if care is provided to a qualified foster individual and you're paid by a state or qualified agency.

Foster care payments are excluded under Notice 2014–7, at Internal Revenue Bulletin 2014-4.

Payments received for Respite Care (babysitting for someo...

jameslis — Tue, 04 Jun 2019 19:27:41 GMT

Payments received for Respite Care (babysitting for someone else's foster child) are taxable. The Respite Care provider (aka babysitter) receives a 1099-MISC with the income shown in Box 7 nonemployee compensation. The IRS gets notified about that 1099-MISC income and will be expecting to see it reported on the Respite Care provider's (babysitter's) tax return.

Re: Payments received for Respite Care (babysitting for someo...

dblegee367 — Wed, 21 Aug 2019 04:34:46 GMT

Does this also apply if the 1099-MISC is issued by the state agency? Is emergency foster care considered respite care (as described in previous comment)?