Tax Break for Certain Foster Care Payments

  • Description
  • Funding History
  • Proposals

The Tax Break for Certain Foster Care Payments is an exemption provided by the Commonwealth to officially-approved foster parents. This tax break exempts from taxation the portion of income received from the state to help offset the costs of providing approved foster care.

Exempted income includes the per-child, basic needs monthly payment from the Commonwealth that helps foster parents provide shelter, food and clothing, and other necessities. It also includes any added payment made to the foster parent in order to allow the parent to provide additional care required by the foster child due to a state-recognized physical, mental, or emotional disability. The state revenue loss resulting from this income exemption equals approximately $3 million a year.

The exemption includes state payments for up to ten foster children who are 18 years old or younger, and up to five foster children 19 years old or older.

In recent years, during most quarters of the year, there typically are about 7,000 to 8,500 children in state-sponsored foster care and related out-of-home placements in Massachusetts..

Updated August 2016

Are you an expert in this area? Do you know someone who is? Let us know so that together we can make this the most up-to-date, useful resource on children's programs in Massachusetts.