Even foster parents receive reimbursements for the care they provide to minors detained by child protective services, is legal that income they receive they do not pay taxes?
2006-11-20 10:17:04 · 4 answers · asked by Bert 1 in Business & Finance ➔ Taxes ➔ United States
If they are being reimbursed for expenses that money very well may not be subject to income tax. If they are receiving income and have expenses that are deductible they may not be required to file. See a tax professional if these are you circumstances you are asking about.
2006-11-20 10:41:35 · answer #1 · answered by ? 6 · 0⤊ 0⤋
Reimbursements for foster parents is tax free b/c it is kind of like a child support payment.
Child support payments are not taxed b/c if the child lived w/the non-custodial parent, they would spend at least that amount caring for the child throughout the year.
2006-11-20 12:34:47 · answer #2 · answered by Anonymous · 1⤊ 0⤋
According to the IRS, payments for Foster Care are generally not considered income for tax purposes.
My opinion of the reason is that they represent the cost to the state of caring for minors that are the state is responsible for. The foster parents are not supposed to "profit" from the arrangement.
2006-11-20 10:39:24 · answer #3 · answered by STEVEN F 7 · 1⤊ 0⤋
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2006-11-20 10:17:43 · answer #4 · answered by Zero 1 · 0⤊ 2⤋