How Much Do Foster Parents Make in Nebraska?

Foster parents in Nebraska receive financial support to help cover the costs associated with caring for children placed in their homes. This financial assistance is not considered income or a salary, but rather a reimbursement intended to meet the needs of the foster child. The amount of support provided can vary, based on factors such as the child’s age and specific care requirements.

Standard Reimbursement Rates

Foster parents in Nebraska receive daily reimbursement rates to help cover the basic expenses of caring for a child. These rates are structured according to the child’s age group and the level of care they require. For instance, the essential parenting level of care in Nebraska provides daily rates that vary by age, with different amounts for children aged 0-5 years compared to those aged 12-19 years. These funds are intended to cover costs such as food, shelter, clothing, and general daily living expenses.

The Nebraska Department of Health and Human Services (DHHS) sets these rates, and they are periodically reviewed and adjusted. There have been annual increases in foster care reimbursement rates, including a 2% rate increase in fiscal year 2023-2024. While these rates aim to support the child’s needs, discussions about adjusting them to keep pace with inflation and the actual cost of care are ongoing.

Adjustments to Reimbursement Rates

Beyond the standard rates, adjustments can be made to account for a foster child’s specific needs, leading to increased payments. Nebraska utilizes a tiered system with five levels of responsibility: Essential, Enhanced, Intensive, Intensive Plus, and Specialized. These tiers categorize the intensity of care required, with higher tiers corresponding to greater needs and increased daily rates.

These increased rates are typically provided for children with medical conditions, behavioral challenges, or other special needs that demand additional resources and specialized care. The system aims to ensure that foster parents receive adequate reimbursement when a child requires more intensive support than what is covered by the basic rate. The average increase between certain levels of care, such as from Intensive Plus to Specialized, can be significant, reflecting the added responsibilities.

Supplemental Financial Assistance

Foster parents can access additional financial support beyond the regular daily reimbursement rates to meet specific needs of the children in their care. Children in foster care in Nebraska are typically eligible for Medicaid, which covers their medical, dental, and mental health needs.

Other forms of assistance may include allowances for clothing, school supplies, and extracurricular activities, although these are often encompassed within the daily reimbursement or provided through specific programs. Additionally, respite care funding may be available to offer foster parents short breaks.

Tax Implications of Foster Care Payments

Foster care payments received by parents are generally not considered taxable income by the Internal Revenue Service (IRS). These payments, often referred to as “qualified foster care payments,” are intended to cover the expenses of caring for a foster child and are typically excluded from gross income under federal law.

While the payments themselves are usually not taxable, foster parents may be eligible for certain tax benefits. A foster child can be considered a “qualifying child” for tax purposes, potentially allowing foster parents to claim the Child Tax Credit. To qualify, the child must meet specific criteria, including residing with the foster parent for more than half the year and not providing more than half of their own support. However, foster parents should consult with a tax professional for personalized advice to ensure compliance with tax laws and to maximize eligible benefits.