Tax laws vary from year to year. It is recommended that each year before filing your Income Tax Return, you consult with the appropriate tax departments of the State and Federal Governments or your personal tax consultant about the reimbursements you receive for the care of a child. If you receive “Services Fees,” they are taxable as income. 

The per diem and other expenses of the child reimbursed to you by the County Department are not considered income and are not taxable according to the U.S. Internal Revenue Service. The Casey National Center for Resource Family Support has produced the booklet, “Federal Tax Benefits for Foster and Adoptive Parents and Kinship Caregivers 2000 Tax Year.” You may request a copy from the state office at the number listed at the bottom of the page in this manual. As with all income tax publications, updated copies should be used for each tax year. Remember that your best course of action as to how to treat children placed in your home when filing income taxes is to consult with a tax advisor. 

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