Do Foster Care Parents Get Paid and How Much?

Foster care provides a temporary home for children unable to remain with their birth families. Foster parents receive financial support to help meet the children’s daily needs in a safe and stable environment. This financial aspect enables caregivers to focus on the children’s well-being.

Understanding Foster Care Payments

Foster parents typically receive financial payments, often called stipends or reimbursements, to help cover the costs of caring for a foster child. Payments are usually disbursed monthly and are not considered income for the foster parents’ labor but rather support for the child’s needs. These funds are generally provided by state or local child welfare agencies. The goal of these payments is to ensure foster parents are not financially burdened, allowing them to offer a nurturing environment during a child’s transition.

Determining Payment Amounts

The amount of financial support foster parents receive varies significantly based on several factors. A primary determinant is the child’s age, with older children often receiving higher daily or monthly rates due to increased needs for clothing, school supplies, and activities. Additionally, children with special needs or medical conditions that require more intensive care often qualify for increased payments. These “difficulty of care” payments acknowledge the additional time and resources needed for specialized support.

Payment rates are also influenced by the specific state or local agency’s rate schedule. These rates can differ considerably by jurisdiction and by the level of care required, such as basic, moderate, or specialized therapeutic care. Some agencies may also offer different rates for sibling groups to encourage keeping families together. For example, regular foster care payments might range from $20 to $25 per day, while therapeutic care could be $45 to $100 per day.

Expenses Covered and Other Financial Aid

Foster care payments cover the daily living costs associated with raising a child. These expenses typically include food, clothing, shelter, personal care items, and transportation. The payments aim to provide for the child’s basic necessities, ensuring a safe and comfortable living situation.

Beyond these basic payments, other essential needs are often addressed separately. Medical care for foster children is commonly covered through programs like Medicaid or the Children’s Health Insurance Program (CHIP). Educational support, such as school supplies, activity fees, and college tuition waivers or grants, may also be available through specific programs or the child’s agency. Additional allowances for specific needs, like initial clothing allowances or funds for extracurricular activities, can also be provided.

Tax Considerations

Under U.S. federal tax law, qualified foster care payments are generally not considered taxable income. This exclusion applies to payments received from a state, political subdivision, or qualified foster care placement agency for caring for a qualified foster individual in the foster parent’s home. The Internal Revenue Service (IRS) views these payments as reimbursements for expenses incurred on behalf of the child, rather than as earned income.

However, there are some exceptions. Payments received solely for maintaining space in a home for emergency foster care, without a child actively placed, may be considered taxable. Additionally, certain “difficulty of care” payments for individuals with disabilities are also generally excludable from income, provided they meet specific IRS criteria regarding the number of individuals cared for.