Are foster parents paid to care for a child?
Foster parents are reimbursed at a set rate for care and supervision of a child. The Internal Revenue Service does not consider foster care payments income for purposes of taxation. Rates are reviewed annually. Foster parents are not responsible for a child’s medical expenses. Children in care are usually eligible for Medicaid that covers all medical, mental, and dental health needs. A child may also be covered under his or her family’s health insurance plan.
