### Question
How does Income Taxes define qualified foster care payment?


### Answer
Under *26 U.S.C. § 131*, **qualified foster care payment** is defined as:

> any payment made pursuant to a foster care program of a State or political subdivision thereof—



(A) which is paid by—



(i) a State or political subdivision thereof, or



(ii) a qualified foster care placement agency, 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**

