Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The Foster Care Tax Credit Act creates a new $850 annual tax credit for families who foster children, making the credit refundable so families can receive money back even if they owe no taxes. To qualify, foster parents must have a child placed with them for at least one month during the tax year and cannot claim the regular child tax credit for that child; the credit phases out for higher-income families starting at $250,000 for joint filers. The bill also requires foster care agencies and courts to report foster child placements to the IRS, directs the Health and Human Services Department to educate foster families about available tax benefits, and includes penalties for fraud or reckless claims on the credit. The changes take effect for placements beginning in 2025, and the bill mandates a study within one year on the financial burdens faced by families taking emergency and short-term foster placements.
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