{"identifier":"/us/usc/t26/s131","title":26,"num":"\u00a7\u202f131.","heading":"Certain foster care payments","text":"\u00a7\u202f131.\nCertain foster care payments\n(a)\nGeneral rule\nGross income shall not include amounts received by a foster care provider during the taxable year as qualified foster care payments.\n(b)\nQualified foster care payment defined\nFor purposes of this section\u2014\n(1)\nIn general\nThe term \u201cqualified foster care payment\u201d means any payment made pursuant to a foster care program of a State or political subdivision thereof\u2014\n(A) which is paid by\u2014\n(i) a State or political subdivision thereof, or\n(ii) a qualified foster care placement agency, and\n(B) which is\u2014\n(i) paid to the foster care provider for caring for a qualified foster individual in the foster care provider\u2019s home, or\n(ii) a difficulty of care payment.\n(2)\nQualified foster individual\nThe term \u201cqualified foster individual\u201d means any individual who is living in a foster family home in which such individual was placed by\u2014\n(A) an agency of a State or political subdivision thereof, or\n(B) a qualified foster care placement agency.\n(3)\nQualified foster care placement agency\nThe term \u201cqualified foster care placement agency\u201d means any placement agency which is licensed or certified by\u2014\n(A) a State or political subdivision thereof, or\n(B) an entity designated by a State or political subdivision thereof,\nfor the foster care program of such State or political subdivision to make foster care payments to providers of foster care.\n(4)\nLimitation based on number of individuals over the age of 18\nIn 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.\n(c)\nDifficulty of care payments\nFor purposes of this section\u2014\n(1)\nDifficulty of care payments\nThe term \u201cdifficulty of care payments\u201d means payments to individuals which are not described in subsection (b)(1)(B)(i), and which\u2014\n(A) are compensation for providing the additional care of a qualified foster individual which is\u2014\n(i) required by reason of a physical, mental, or emotional handicap of such individual with respect to which the State has determined that there is a need for additional compensation, and\n(ii) provided in the home of the foster care provider, and\n(B) are designated by the payor as compensation described in subparagraph (A).\n(2)\nLimitation based on number of individuals\nIn the case of any foster home, 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\u2014\n(A) 10 qualified foster individuals who have not attained age 19, and\n(B) 5 qualified foster individuals not described in subparagraph (A).","url":"https://projectusc.org/usc/t26/s131.html","content":[{"t":"sec","id":"/us/usc/t26/s131","children":[{"t":"num","text":"\u00a7\u202f131."},{"t":"heading","text":"Certain foster care payments"},{"t":"subsec","id":"/us/usc/t26/s131/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"General rule"},{"t":"content","children":[{"t":"p","text":"Gross income shall not include amounts received by a foster care provider during the taxable year as qualified foster care payments.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s131/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Qualified foster care payment defined"},{"t":"chapeau","text":"For purposes of this section\u2014"},{"t":"para","id":"/us/usc/t26/s131/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The term \u201cqualified foster care payment\u201d means any payment made pursuant to a foster care program of a State or political subdivision thereof\u2014"},{"t":"subpara","id":"/us/usc/t26/s131/b/1/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" which is paid by\u2014"},{"t":"clause","id":"/us/usc/t26/s131/b/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" a State or political subdivision thereof, or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s131/b/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" a qualified foster care placement agency, and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s131/b/1/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" which is\u2014"},{"t":"clause","id":"/us/usc/t26/s131/b/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" paid to the foster care provider for caring for a qualified foster individual in the foster care provider\u2019s home, or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s131/b/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" a difficulty of care payment.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s131/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Qualified foster individual"},{"t":"chapeau","text":"The term \u201cqualified foster individual\u201d means any individual who is living in a foster family home in which such individual was placed by\u2014"},{"t":"subpara","id":"/us/usc/t26/s131/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" an agency of a State or political subdivision thereof, or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s131/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" a qualified foster care placement agency.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s131/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Qualified foster care placement agency"},{"t":"chapeau","text":"The term \u201cqualified foster care placement agency\u201d means any placement agency which is licensed or certified by\u2014"},{"t":"subpara","id":"/us/usc/t26/s131/b/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" a State or political subdivision thereof, or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s131/b/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" an entity designated by a State or political subdivision thereof,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"for the foster care program of such State or political subdivision to make foster care payments to providers of foster care.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s131/b/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Limitation based on number of individuals over the age of 18"},{"t":"content","children":[{"t":"p","text":"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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s131/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Difficulty of care payments"},{"t":"chapeau","text":"For purposes of this section\u2014"},{"t":"para","id":"/us/usc/t26/s131/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Difficulty of care payments"},{"t":"chapeau","text":"The term \u201cdifficulty of care payments\u201d means payments to individuals which are not described in subsection (b)(1)(B)(i), and which\u2014"},{"t":"subpara","id":"/us/usc/t26/s131/c/1/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" are compensation for providing the additional care of a qualified foster individual which is\u2014"},{"t":"clause","id":"/us/usc/t26/s131/c/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" required by reason of a physical, mental, or emotional handicap of such individual with respect to which the State has determined that there is a need for additional compensation, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s131/c/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" provided in the home of the foster care provider, and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s131/c/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" are designated by the payor as compensation described in subparagraph (A).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s131/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Limitation based on number of individuals"},{"t":"chapeau","text":"In the case of any foster home, 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\u2014"},{"t":"subpara","id":"/us/usc/t26/s131/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" 10 qualified foster individuals who have not attained age 19, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s131/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" 5 qualified foster individuals not described in subparagraph (A).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}