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Foster Care Payments and 1099 Reporting
August 20, 2025
Q. Are foster care payments to individuals caring for children in foster care 1099 reportable?
A.
(Answered by IOFM's third-party tax expert)
The IRS, in Publication 4694, says foster care payments are not taxable income (thus, not reportable on a 1099). The IRS does add the caveat of: "(I)f you receive payments to maintain space in your home for emergency foster care, you must include these payments as income for federal tax purposes."
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