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HR 2438119th CongressIn Committee
Foster Care Tax Credit Act
Introduced: Mar 27, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs
Creates a refundable tax credit of $850 for foster families who care for qualifying foster children for at least one month, with income phaseouts and strict eligibility requirements.
Key Points
- 1Establishes $850 refundable tax credit for eligible foster families
- 2Phases out credit for higher-income taxpayers ($250k joint, $150k single, $125k married filing separately)
- 3Requires foster child to be placed for minimum 1 month (15+ consecutive days qualifies)
- 4Includes penalties for fraudulent or reckless claims (10-year disallowance for fraud, 2 years for reckless)
- 5Mandates information reporting by placement agencies to IRS
- 6Authorizes education outreach about existing tax provisions for foster families
Impact Areas
Foster families and caregiversFoster childrenIRS and tax administrationState and tribal foster care agencies
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