### Question
How does the law define difficulty of care payments?


### Answer
Under *26 U.S.C. § 131*, **difficulty of care payments** is defined as:

> payments to individuals which are not described in subsection (b)(1)(B)(i), and which—



(A) are compensation for providing the additional care of a qualified foster individual which is—



(i) required by reason of a physical, mental, or emotional handicap of such individual with respect to which the State has determined that there is a need for additional compensation, and



(ii) provided in the home of the foster care provider, and


  


(B) are designated by the payor as compensation described in subparagraph (A)

#### Citation:
  - *26 U.S.C. § 131*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

