[V8 Momma]

Has anyone heard if our Per Diems will be taxable income under the new rules? I have heard rumors that it may be but cannot find anything definite on this.
thanks!

[naca]

We were told during training that the per diem is NOT taxable income. It is still just reimbursement for the child's expenses.

[EandDmom]

We had to argue with the accountant today about if it was taxable income. She said it is unless we can prove we had spent so much on them. I said no its not she said it is I said no its not she said I'll check got out her rule book and said no its not. We got to claim all of them today. Just holding my breath until tomorrow to see if it is red flagged through the IRS on wether or not mom has filed on them. She is not supposed to be able to but doesn't mean she hasn't. I doubt highly she has even done her taxes yet. Still holding my breath.

[DianeS]

Neither your agency rules nor your state laws can make foster care subsidy taxable by the IRS for your federal taxes. That would have to be done by the IRS itself, and it has not changed - foster care subsidy is still not taxable.

Now, it is possible that your state revenue office could have state law changed to make it taxable by your state laws (assuming you have state income tax, etc). That would be highly unusual, though. But if that's what someone told you, you might want to ask your tax question more specifically, to avoid federal answers.

[StephanieMB]

We just did our taxes a week ago or so and did not have to claim it as income. Last year, we claimed 2 fk's on our taxes, since we had them over half the year AND so did their mom! The caseworker reported her, but we haven't heard what will happen (if anything)...