How Much Do Foster Parents Make Per Child?

Foster parents provide temporary, nurturing homes for children who cannot safely remain with their biological families. To support these efforts, foster parents receive financial assistance. This financial support is intended to help cover the costs associated with caring for a foster child, ensuring the child’s needs are met within a stable home environment.

Understanding Foster Care Reimbursement

Foster care payments are provided as reimbursements for expenses incurred while caring for a child, rather than as a salary or income. These payments are usually calculated on a per diem, or daily, basis, meaning a set amount is provided for each day a child is in care. The primary purpose of these funds is to offset the routine costs of providing for a foster child.

These reimbursements cover the necessities that every child requires. This includes expenses for food, suitable shelter, appropriate clothing, and other daily personal needs. The financial support aims to ensure that foster parents can readily provide for a child’s fundamental well-being without incurring significant personal financial burden.

The payment structure reinforces the principle that foster care is a service focused on the child’s welfare. Foster care agencies, whether public or private, issue these payments to help maintain the child’s stability and comfort within the foster home. The funds are a practical recognition of the financial commitment involved in providing care.

Factors Influencing Payment Amounts

The amount of financial reimbursement foster parents receive can vary significantly due to several influencing factors. These variations reflect the diverse needs of children in care and differences in the cost of living across the United States.

A child’s age is a common determinant of the payment amount, with rates often increasing as children get older. For instance, a state might provide approximately $20 per day for a child aged 0-5 years, which could increase to around $22 per day for children aged 6-12 years, and further to about $23 per day for teenagers aged 13-20 years. Older children typically have higher expenses related to food, clothing, activities, and personal care items, which these tiered rates aim to accommodate.

Children with special needs often qualify for higher reimbursement rates, sometimes referred to as “difficulty-of-care” or “specialized care increments.” These increased payments account for the additional resources, time, and specialized attention required for children with medical conditions, behavioral challenges, developmental delays, or disabilities. For example, while basic rates might be in the range of $600-$800 per month, payments for children with significant special needs could exceed $1,000 or even $2,000 per month, depending on the severity and type of need. This supplemental funding helps cover costs like specialized therapies, medical supplies, or increased supervision.

Geographic location also plays a substantial role in determining payment amounts, reflecting local economic conditions and cost of living. Reimbursement rates are set at the state, county, or even regional level, leading to considerable differences across the country. For example, basic monthly rates in some lower cost-of-living areas might range from $400 to $600, while in metropolitan areas or states with higher living expenses, basic rates could range from $800 to over $1,000 per month. These variations ensure that the payments remain relevant to the actual expenses incurred in a given locale.

While most foster care payments follow state guidelines, the type of agency involved can sometimes lead to slight differences in rates. Public agencies and private foster care agencies generally adhere to the state’s established payment structures. However, private agencies might occasionally offer slightly varied rates, especially if they provide additional support services.

Additional Financial Assistance Available

Beyond the standard per diem reimbursements, foster parents may be eligible for various forms of additional financial assistance. The availability and scope of these benefits can vary by jurisdiction, but they collectively aim to support the comprehensive needs of foster children. These forms of support are separate from the basic daily payments.

Clothing Allowances

Clothing allowances are commonly provided to ensure foster children have appropriate attire. Foster parents may receive an initial allowance when a child is first placed, followed by periodic or annual allowances, such as before the school year or holidays. For example, some jurisdictions provide an annual clothing allowance ranging from $200 for younger children to $400 or more for older children. These funds help cover seasonal clothing, school attire, and personal items.

Medical and Dental Coverage

Medical and dental coverage for foster children is typically managed through government programs, such as Medicaid or the Children’s Health Insurance Program (CHIP). This means foster parents are generally not responsible for the costs of healthcare services, including doctor visits, prescription medications, and dental care. Foster children are often automatically eligible for these programs, ensuring access to necessary health services.

Childcare Assistance

Childcare or daycare assistance is often available for working foster parents. Subsidies or direct payments to childcare providers can help cover the costs of services, particularly for younger children or during school breaks. Foster children often qualify for these benefits regardless of the foster family’s income.

Other Support

Other forms of support may include one-time funds for immediate needs upon a child’s placement, or specific allowances for items like diapers and formula for infants. Some programs also provide assistance for school-related expenses, such as supplies, fees, or participation in extracurricular activities. Respite care, which offers temporary relief for foster parents, may also be financially supported or provided directly.

Tax Considerations for Foster Parents

Under federal law, “qualified foster care payments” are generally not considered taxable income. This applies to funds received from a state, political subdivision, or a qualified foster care placement agency for the care of a qualified foster individual in the foster parent’s home.

This exclusion from gross income means that foster parents typically do not need to report these payments on their federal income tax returns. The Internal Revenue Service (IRS) views these payments as reimbursements for the expenses of caring for the child, rather than as earnings or profit. This treatment significantly reduces the tax burden for foster families.

There are limited exceptions where foster care payments might be considered taxable. For instance, payments received solely for maintaining space in a home for emergency foster care, without a child actively placed, may be taxable. Additionally, “difficulty-of-care” payments might be partially taxable in specific circumstances. However, for most foster parents receiving payments for direct child care, these funds are exempt.

Foster parents may also be able to claim certain tax benefits related to the foster child. While foster children may not always qualify for the same credits as biological children, they can sometimes be claimed as dependents for tax purposes, potentially qualifying the foster family for credits like the Child Tax Credit, if eligibility criteria are met. In some cases, unreimbursed expenses incurred by foster parents may be deductible, though this is less common as payments are intended to cover costs.

Financial Responsibilities of Foster Parents

Foster care payments are provided with a clear purpose: to cover the daily living expenses of the foster child. These funds are intended to ensure the child’s basic needs are met comprehensively within the foster home. This includes a portion of housing costs, utilities, nutritious food, and age-appropriate clothing.

The payments also cover personal care items, school supplies, and transportation costs for school, appointments, and activities. Additionally, they are meant to support reasonable recreational activities, allowing the child to participate in social and developmental experiences. The expectation is that these funds are used directly for the benefit of the foster child.

It is important to understand that these payments are reimbursements for expenses, not a source of personal income or profit for the foster parents. The financial support is a recognition of the costs associated with providing care, not a salary. Foster parents are expected to manage these funds responsibly and apply them toward the child’s well-being.

While the payments cover many costs, foster parents often contribute their own resources beyond the provided stipends. This personal investment reflects their commitment to the child’s development and comfort. Agencies may require accountability for how the funds are utilized, ensuring they directly support the child’s needs.