BLACK BART Posted May 3, 2018 Report Share Posted May 3, 2018 Does anybody happen to know if such is taxable? Guy left sack of junk with me to be sorted out after 4-15 & I'm doing it now. In the debris are three check stubs from AR Dep't. of Human Services listing one month's payment for three juvenile reprobates - $50 for mild cases, $300 for the moderately tough, and $410 for those in which karate skills would be helpful and it's a good idea to lock the bedroom door at night. I've heard about this program over the years from different people; the state farms out the troubled kids to any soul willing to take them in and hopefully rehabilitate them. But, I've never had a client who actually did it (well, I know one who applied but was turned down -- good thing too; I wouldn't leave my hamster with them). But anyway, there's no 1099 or anything else here and the client's clueless. There's a phone number on the check stub, but I don't want to call and ask "Is this taxable" to somebody who's going to say "You're a tax preparer. You're asking me?" Probably will end up doing that anyway, but thought I'd give it a shot here first. Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted May 3, 2018 Report Share Posted May 3, 2018 Have received foster care payments, respite care payments, and adoption assistance, none of which were reportable/taxable to us. It has been many years, but I have faint memory of doing the research. There must be some official phrase, term, or title for the payments which you can research. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted May 3, 2018 Report Share Posted May 3, 2018 Normal foster care payments aren't taxable if they fall under the 3 criteria of sec 131. You could try researching "difficulty of care" payments to see if these payments fall into that category. Also, google for "Notice 2014-7" or search for it directly on the IRS site. Sorry, I'm on my tablet and can't get a link without it downloading the doc itself. 4 Quote Link to comment Share on other sites More sharing options...
BLACK BART Posted May 3, 2018 Author Report Share Posted May 3, 2018 https://www.jklasser.com/news/when-are-foster-care-payments-tax-free/ Got it here; thanks anyway. The quoted rates were wrong (thought that $50 - a partial month - was a bit light); per DHS it's $300-400-500 depending on age. All's well that ends well. Those old yellow book guys and TurboTax are gettin' about as good as CCH. 3 Quote Link to comment Share on other sites More sharing options...
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