General rule
Gross income shall not include amounts received by a foster care provider during the taxable year as qualified foster care payments.
Qualified foster care payment defined
In general
Qualified foster individual
Qualified foster care placement agency
Limitation based on number of individuals over the age of 18
In the case of any foster home in which there is a qualified foster care individual who has attained age 19, foster care payments (other than difficulty of care payments) for any period to which such payments relate shall not be excludable from gross income under subsection (a) to the extent such payments are made for more than 5 such qualified foster individuals.
Difficulty of care payments
Difficulty of care payments
Limitation based on number of individuals
Pub. L. 97–473, title I, § 102(a)96 Stat. 2606 Pub. L. 99–514, title XVII, § 1707(a)100 Stat. 2781 Pub. L. 107–147, title IV, § 404(a)116 Stat. 41 (Added , , ; amended , , ; –(c), , .)
Editorial Notes
Prior Provisions
section 140 of this titleA prior section 131 was renumbered .
Amendments
Pub. L. 107–147, § 404(a)2002—Subsec. (b)(1). , amended provisions preceding subpar. (B) generally. Prior to amendment, text of such provisions read as follows: “The term ‘qualified foster care payment’ means any amount—
“(A) which is paid by a State or political subdivision thereof or by a placement agency which is described in section 501(c)(3) and exempt from tax under section 501(a), and”.
Pub. L. 107–147, § 404(b)Subsec. (b)(2)(B). , amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “in the case of an individual who has not attained age 19, an organization which is licensed by a State (or political subdivision thereof) as a placement agency and which is described in section 501(c)(3) and exempt from tax under section 501(a).”
Pub. L. 107–147, § 404(c)Subsec. (b)(3), (4). , added par. (3) and redesignated former par. (3) as (4).
Pub. L. 99–5141986—Subsec. (a). amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Gross income shall not include amounts received by a foster parent during the taxable year as qualified foster care payments.”
Pub. L. 99–514Subsec. (b). amended subsec. (b) generally. Prior to amendment, par. (1) “In general” read as follows: “The term ‘qualified foster care payment’ means any amount—
“(A) which is paid by a State or political subdivision thereof or by a child-placing agency which is described in section 501(c)(3) and exempt from tax under section 501(a), and
“(B) which is—
“(i) paid to reimburse the foster parent for the expenses of caring for a qualified foster child in the foster parent’s home, or
“(ii) a difficulty of care payment.”
and par. (2) “Qualified foster child” read as follows: “The term ‘qualified foster child’ means any individual who—
“(A) has not attained age 19, and
“(B) is living in a foster family home in which such individual was placed by—
“(i) an agency of a State or political subdivision thereof, or
“(ii) an organization which is licensed by a State (or political subdivision thereof) as a child-placing agency and which is described in section 501(c)(3) and exempt from tax under section 501(a).”
Pub. L. 99–514Subsec. (c). , in amending subsec. (c) generally, in par. (1)(A), substituted references to “qualified foster individual”, “such individual”, and “foster care provider” for references to “qualified foster child”, “such child”, and “foster parent”, respectively, and in par. (2) substituted “more than (A) 10 qualified foster individuals who have not attained age 19, and (B) 5 qualified foster individuals not described in subparagraph (A)” for “more than 10 qualified foster children”.
Statutory Notes and Related Subsidiaries
Effective Date of 2002 Amendment
Pub. L. 107–147, title IV, § 404(d)116 Stat. 42
Effective Date of 1986 Amendment
Pub. L. 99–514, title XVII, § 1707(b)100 Stat. 2782
Effective Date
Pub. L. 97–473, title I, § 102(c)96 Stat. 2607