Tax Info for Foster, Adoptive and Kinship Parents
Understanding tax regulations is essential for foster parents, as it directly affects their financial planning and legal responsibilities.
Foster parents often receive stipends or reimbursements to support the care of foster children, and knowing how these are treated for tax purposes can prevent costly errors – and, more importantly, produce savings on tax returns.
In many cases, foster care payments are non-taxable, but additional allowances or services might have different rules. Proper understanding helps foster parents take advantage of tax benefits such as deductions, exemptions, or credits like the Earned Income Tax Credit (EITC) or the Child and Dependent Care Credit. Accurate record-keeping and awareness of IRS guidelines ensure compliance and protect against audits or penalties. Additionally, understanding these regulations empowers foster parents to make informed decisions, maximize financial resources, and focus more fully on providing a stable, nurturing environment for the children in their care. Consulting a tax professional can offer personalized guidance and long-term peace of mind.
The annual tax guide is provided by our friends at Bills Tax Service.
After 12 years of foster parenting, I found the tax guide instrumental in saving me $1,000 the year I found it and nearly $10,000 the following year. The membership tax guide pays for the entire membership year after year.
NFPATI Course on Tax Preparation Regulations
2026 Tax Filing Season Information
Provided by our colleagues at the IRS.
Guidance is available on Trump Accounts, a new individual retirement account (IRA) for eligible children. The guidance shares an overview of how the accounts work and includes details of a one-time $1,000 pilot program contribution by the federal government. https://ow.ly/HYpk50XBs8L #IRS
#IRS tip:
Getting ready for filing season now can help you file your tax return quickly and avoid missing any credits or deductions you may be eligible for come tax time. https://ow.ly/TXYT50XyEle
Get Ready for the 2026 Tax Filing Season
The annual IRS Get Ready campaign is a series of tips, reminders and new information for taxpayers on what they need to know in preparation for filing season. For example, the One, Big, Beautiful Bill brings several changes or additions that can significantly affect federal taxes, credits and deductions. Tax deductions for tips, overtime, car loan interest and seniors are just a few of many recent updates.
Click HERE to download the document.
Child Tax Credit – FILE NAME: YT.Vert.AdoptionCTC2024
If you’ve adopted a child, you may be eligible to claim the Child Tax Credit. Visit: irs.gov/childtaxcredit
Earned Income Tax Credit – FILE NAME: YT.Vert.AdoptionEITC2024
If you’ve adopted a child, see if you now qualify for the Earned Income Tax Credit. Visit the EITC Assistant today: irs.gov/eitcassistant
Withholding – FILE NAME: YT.Vert.AdoptionWithholding2024
Adopted a child? It’s a good time to check your tax withholding. Visit irs.gov/withholding
Adoption Credit – FILE NAME: YT.Vert.Adoption2024
You may be eligible to claim the adoption tax credit from the #IRS. Visit irs.gov/adoption
Adoption Credit – FILE NAME: YT.Vert.Adoption2024nv
The adoption tax credit allows families to claim eligible adoption expenses when they file their return. Visit irs.gov/adoption
General Parents – FILE NAME: YT.Vert.Parents2024
Check out the valuable tax benefits available to parents from the #IRS: irs.gov/parents
IRS Education Credits Q&A
Find the answers to the most common questions you ask about the Education Credits — the American opportunity tax credit (AOTC) and the lifetime learning credit (LLC).
IRS Qualified Education Expenses
Qualified education expenses are amounts paid for tuition, fees and other related expenses for an eligible student.
IRS Am I Eligible to Claim an Education Credit?
Are you a college student applying for financial aid? In addition to @FAFSA, remember that education tax credits may help with higher education expenses. #IRS has a tool to help determine eligibility. This interview will help you determine if your education expenses qualify for a tax benefit.
IRS Tax Benefits for Education - Information Center
Working on a @FAFSA application? #IRS reminds you that college students may also be eligible to claim a tax credit for education expenses. Tax credits, deductions and savings plans can help taxpayers with their expenses for higher education.
Free Tax Preparation Options
- There are several ways to file your taxes, including free options for qualified individuals. Learn more from the #IRS: https://ow.ly/Snr450UOaRp
- The #IRS offers free online and in-person tax preparation options for eligible taxpayers. Take a moment to learn about the different options available: https://ow.ly/Snr450UOaRp
What To Do If You Get Mail from the IRS
After the culmination of the filing season, there could be a situation where IRS could need additional information from you as a taxpayer. If needed, IRS sends notices and letters when it needs to ask a question about a taxpayer’s federal tax return, let them know about a change to their account or request a payment. Don’t panic if mail comes from the IRS – they’re here to help.
The #IRS is kicking off our #GetReady campaign to help everyone prepare for the upcoming filing season in early 2025. For helpful tools and tips, go to: https://ow.ly/ch8X50UeZQx
The #IRS has simple steps you can take now to make the upcoming tax filing season easier:
- Create or access your IRS Online Account for info
- Gather and organize your tax records
- Check your withholding
- Set up direct deposit for a faster refund
Earned Income Tax Credit Resources
One third of workers eligible for the Earned Income Tax Credit may be newly qualified for the credit each year. Let’s make sure no one misses this benefit. Help the #IRS spread the word about #EITC: www.irs.gov/eitc
Spread the word about the Earned Income Tax Credit: Your friends, family or neighbors could miss a valuable #IRS tax credit if they don’t know about the #EITC. See: www.irs.gov/eitc
Free Tax Prep
Claiming the Earned Income Tax Credit? Get all the #IRS tax credits, including #EITC, you deserve without spending a cent. Find a free tax prep site near you: www.irs.gov/vita
Ready to claim the Earned Income Tax Credit but need a little help? #IRS-certified volunteers might be able help you claim the #EITC and all the tax benefits you deserve. And it’s free! www.irs.gov/vita
EITC Assistant
Don’t guess about Earned Income Tax Credit eligibility. Use the #IRS #EITC Assistant to find out if you qualify. www.irs.gov/eitcassistant
Wondering if you qualify for the Earned Income Tax Credit? Don’t guess. Know. Check out the #IRS #EITC Assistant – https://go.usa.gov/xRFGE
Families
Special tax credits, such as the Earned Income Tax Credit, and deductions can help parents offset the costs of raising a child. Parents should check for benefits when they prepare their tax return: www.irs.gov/eitc #IRS
Did your family earn $66K or less in 2024? Check the Earned Income Tax Credit. If qualified, families could get a bigger #IRS refund. Learn more and help spread the word: www.irs.gov/eitc
At risk of missing the credit
Unmarried workers with no children often overlook the Earned Income Tax Credit. Help us spread the word about the valuable #EITC. www.irs.gov/eitc #IRS
The Earned Income Tax Credit, or #EITC, can be a powerful tool to combat hunger and homelessness in communities nationwide. Help #IRS spread the word: www.irs.gov/eitc
Persons with disabilities
The Earned Income Tax Credit for families of children with special needs could mean less taxes owed or a refund. Use the #IRS EITC Assistant to see if you’re eligible: www.irs.gov/eitcassistant #EITC
Retired on disability? Retirement benefits count as earned income for a valuable #IRS tax credit. Visit https://ow.ly/3wgm50UC8Q6 to learn more.
Veterans
Members of the military can include their combat pay as earned income to claim the Earned Income Tax Credit. To learn more, visit www.irs.gov/eitc #EITC
The #IRS reminds members of the military and veterans that they may qualify for the Earned Income Tax Credit. Don’t miss out. Visit: www.irs.gov/eitc #EITC
Rural America
Many in rural America qualify for the Earned Income Tax Credit. Do you? Find out at www.irs.gov/eitc #EITC #IRS
The #IRS wants qualified taxpayers in rural communities to be aware of the Earned Income Tax Credit and correctly claim it. Learn more at: www.irs.gov/eitc #EITC
Native American Community
The #IRS encourages the Native American community to check out the Earned Income Tax Credit. To see if you qualify, visit: www.irs.gov/eitc #EITC
The Earned Income Tax Credit is a financial boost for Native American families working to make ends meet. To learn more, visit: www.irs.gov/eitc #EITC #IRS