Is Money Received by a Foster Care Provider Income in the Eyes of the IRS?

Posted on October 04, 2012

Are payments from Medicaid paid to a foster care provider includible income? It depends on if you are related to the person for whom you provide care. Typically, Medicaid funds paid to a foster care provider are not treated as income to the foster care provider. However, the IRS takes the position that a biological parent of a disabled child may not exclude the Medicaid funds from income because care provided by a biological parent is not foster care. Has the IRS contacted you about money you recieved from Medicare as a foster care provider? Call us, we can help. Call 877 4 IRS LAW