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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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