There are no deductible expenses for foster parenting. If you receive foster care payments form a child placement agency, the state government, or your local government, the payments are nontaxable income, however.
If you are not able to claim the child as a dependent, you may be able to claim charitable contributions for your non-reimbursable expenses. You must keep track of all your payments and expenses (food, clothing, and care for the child). If you paid more in expenses than you received in board and care payments, you can claim the expenses that exceed the amount you received, but only if you have no profit motive for providing care. A foster parent who is planning on adopting a child is not eligible to claim these expenses. This deduction is also only available if the agency or organization who placed the child with you can receive charitable donations.
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