Treatment of SILP Payments for Tax Purposes

Q: I am a Court Appointed Special Advocate (CASA) for a young person living in a Supervised Independent Living Placement (SILP). Like all youth in a SILP, she receives an $820 monthly foster care payment directly. With tax season approaching, she wants to know if this counts as income. Does she need to report these payments on her personal income taxes?


A: No; Federal law governing income recognizes that foster care payments are welfare payments for the support of youth in foster care. As such, they are not taxable income and do not need to be reported on the youth’s income tax return.

Source: IRS Publication 525 (2013), Taxable and Nontaxable Income; IRS CCA 200021036

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