### Question
How is the term qualified foster care payment defined?


### Answer
The term **qualified foster care payment** is defined in *26 U.S.C. § 131* as the following:

> any amount—


(A) which is paid by a State or political subdivision thereof or by a placement agency which is described in section 501(c)(3) and exempt from tax under section 501(a), and


(B) which is—


(i) paid to the foster care provider for caring for a qualified foster individual in the foster care provider's home, or


(ii) a difficulty of care payment

#### 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**

