Do You Get Paid to Foster a Child?

Foster parents receive financial support, which helps them meet the daily needs of the children placed in their homes. The financial assistance aims to ensure the child’s well-being and to support the foster family in their caregiving role. This arrangement helps alleviate some of the financial burden, allowing foster parents to focus on the child’s development and stability.

Understanding Foster Care Reimbursement

Foster care reimbursement functions as a stipend or per diem payment provided by state or local agencies. This financial aid is designed to cover the routine daily expenses of caring for a foster child. These expenses typically include provisions for food, clothing, personal care items, basic transportation needs, and recreational activities. These payments are generally not classified as “salary” or “income” by the Internal Revenue Service (IRS). Instead, they are considered a reimbursement for the actual costs incurred in providing care. The primary purpose of this financial support is to ensure the child’s fundamental needs are met consistently.

Factors Affecting Reimbursement Amounts

The specific amount of daily or monthly reimbursement a foster parent receives is influenced by several factors. A child’s age typically affects the stipend, with older children generally qualifying for higher payments due to increased needs.

The child’s individual needs and the level of care required also play a significant role. Children with higher needs, such as those requiring therapeutic, medical, or specialized care for disabilities, often qualify for substantially higher payments. These “difficulty of care” payments compensate for the additional resources, time, and specialized attention these children require.

Reimbursement rates also vary considerably depending on the state and local county agency responsible for foster care. Some states may offer higher rates for specific age groups or have distinct tiers for children with varying levels of special needs.

Foster parents who complete advanced training or obtain specific certifications may be eligible for slightly higher rates in some jurisdictions.

Additional Financial Support

Beyond the regular daily stipend, foster parents can access other forms of financial assistance.

• Foster children typically receive comprehensive medical and dental coverage, often through Medicaid or other state-funded health insurance programs. This coverage addresses their medical, dental, and mental health needs without direct cost to the foster family.
• Many agencies also offer assistance with childcare expenses, covering services for licensed childcare providers.
• Periodic clothing allowances are common, with initial allowances provided upon placement and seasonal or annual allowances thereafter.
• Some agencies provide one-time start-up funds to assist with initial placement costs, such as purchasing a crib or car seat.
• Foster parents may also access financial support or direct services for respite care, allowing temporary breaks from caregiving responsibilities.
• If a child is adopted from foster care, ongoing financial assistance through adoption subsidies may continue.

Financial Responsibilities of Foster Parents

While significant financial support is available, foster parents still bear certain financial responsibilities. The reimbursement is not intended to cover all household expenses or serve as a source of profit.

Foster parents often experience increases in household utility bills, such as electricity, water, and internet services, due to an additional person in the home. Increased wear and tear on household items, furniture, and vehicles is also common and not fully covered by the basic stipend.

Any personal gifts, unique recreational activities, or non-essential items beyond the basic allowance are typically financed by the foster parents themselves. Foster parents might also incur out-of-pocket costs before reimbursement payments begin.

The substantial time, emotional investment, and physical effort involved in fostering are not financially compensated beyond the structured reimbursement. Foster care is a commitment of care and support, not a traditional employment arrangement.

Receiving Foster Care Payments

Foster care payments are typically disbursed on a regular schedule, most commonly monthly or bi-weekly. Agencies usually offer various methods of payment, including direct deposit into a bank account, a debit card, or a physical check. Direct deposit is often encouraged for faster and more convenient receipt of funds.

For tax purposes, payments received from a state or qualified agency for caring for a foster child in one’s home are generally excluded from gross income. These are considered “qualified foster care payments” by the IRS and are primarily viewed as reimbursement for expenses incurred. It is always advisable to consult with a tax professional for individual circumstances and to maintain detailed records of all foster care-related expenses and payments.