Foster Care: Tax Guide (2025)

Rules for claiming foster children, treatment of foster care payments, and common tax questions.

Claiming a Foster Child

Foster children may be qualifying children for certain credits if you meet residency and support tests.

Foster Care Payments

Most payments received for foster care are not taxable if they are reimbursement for expenses; document amounts carefully.

Related Benefits

  • Child Tax Credit eligibility
  • Earned Income Tax Credit considerations
  • State-specific foster care supports