what is the revenue ruling code for fostercare?

Question

i take care of a foster child and in the state of Missouri you don't have to pay taxes on the fostercare income that you recieve. I was billed from the irs for that income, and was told i need to find the rev. code and call them back with it.

Answer 1

See http://www.irs.gov/pub/irs-pdf/p525.pdf - this might help you. Look at page 30, or do a find on "foster".

Sounds like they're putting the burden of proof on you, but it looks like it probably should have been excluded like you said.

If you can't get it resolved, call the Taxpayer Advocate department at 1-877-777-4778. They can cut through a lot of red tape.

I'd also talk to the agency who placed the foster child to be sure they're a qualified organization. They might have some information on how to get this straightened out.

Good luck.

Answer 2

sounds like Missouri has a specific exclusion for fostercare income.
Most states have differences from federal tax law.

The Internal Revenue Code broadly taxes all income from whatever source and then provides a list of specific exclusions - unfortunately, income from fostercare is not one of them.

Sorry.