Foster home expenses

[abhiol]

Hello,

Referring to the following link: https://www.1040.com/tax-guide/taxes-for-families/foster-parents/

I do understand that foster care payments are nontaxable income.

However, based on the above link, I am interpreting that we will not be able to deduct our foster care expenses since the agency that placed the child with us cannot receive charitable donations.

Question: Is that the correct interpretation?

[AnnetteB6]

Yes, you interpreted that correctly.  You cannot deduct your foster care expenses as a charitable contribution if the agency cannot accept charitable donations.

Instead, your expenses would be used to determine if you are eligible to claim the foster child as a dependent.  If your expenses were greater than the amount you received for providing the foster care, then the 'support' requirement for claiming a dependent would be met.

Who can I claim as a dependent?

@abhiol