Internal Revenue Code · 26 U.S.C.
§ 131. Certain foster care payments
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 131
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- January 14, 1983 by Pub. L. 97–473
- Last amended
- March 9, 2002 by Pub. L. 107–147
- Amendments
- 2 dated changes in the source credit
- Length
- 3 subsections · 496 words · about 2 min to read
- Defines
- 4 terms
- Cross-references
- cites 0; cited by 2 Code sections and 4 other regulations
Gross income shall not include amounts received by a foster care provider during the taxable year as qualified foster care payments.
In the case of any foster home in which there is a qualified foster care individual who has attained age 19, foster care payments (other than difficulty of care payments) for any period to which such payments relate shall not be excludable from gross income under subsection (a) to the extent such payments are made for more than 5 such qualified foster individuals.
(Added Pub. L. 97–473, title I, § 102(a), Jan. 14, 1983, 96 Stat. 2606; amended Pub. L. 99–514, title XVII, § 1707(a), Oct. 22, 1986, 100 Stat. 2781; Pub. L. 107–147, title IV, § 404(a)–(c), Mar. 9, 2002, 116 Stat. 41.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited by 2 Code sections
- § 408(o)(5) Individual retirement accounts
- § 415(c)(8)(A) Limitations on benefits and contribution under qualified plans
Cited in 4 regulations not issued under it
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter B Computation of Taxable Income
- Part III ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME
Nearby sections
- § 127 Educational assistance programs
- § 128 Employer contributions to Trump accounts
- § 129 Dependent care assistance programs
- § 130 Certain personal injury liability assignments
- § 131 Certain foster care payments
- § 132 Certain fringe benefits
- § 133 Repealed
- § 134 Certain military benefits
- § 135 Income from United States savings bonds used to pay higher education tuition and fees
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Prior Provisions
A prior section 131 was renumbered section 140 of this title.
Amendments
2002—Subsec. (b)(1). Pub. L. 107–147, § 404(a), amended provisions preceding subpar. (B) generally. Prior to amendment, text of such provisions read as follows: “The term ‘qualified foster care payment’ means any amount—
“(A) which is paid by a State or political subdivision thereof or by a placement agency which is described in section 501(c)(3) and exempt from tax under section 501(a), and”.
Subsec. (b)(2)(B). Pub. L. 107–147, § 404(b), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “in the case of an individual who has not attained age 19, an organization which is licensed by a State (or political subdivision thereof) as a placement agency and which is described in section 501(c)(3) and exempt from tax under section 501(a).”
Subsec. (b)(3), (4). Pub. L. 107–147, § 404(c), added par. (3) and redesignated former par. (3) as (4).
1986—Subsec. (a). Pub. L. 99–514 amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Gross income shall not include amounts received by a foster parent during the taxable year as qualified foster care payments.”
Subsec. (b). Pub. L. 99–514 amended subsec. (b) generally. Prior to amendment, par. (1) “In general” read as follows: “The term ‘qualified foster care payment’ means any amount—
“(A) which is paid by a State or political subdivision thereof or by a child-placing agency which is described in section 501(c)(3) and exempt from tax under section 501(a), and
“(B) which is—
“(i) paid to reimburse the foster parent for the expenses of caring for a qualified foster child in the foster parent’s home, or
“(ii) a difficulty of care payment.”
and par. (2) “Qualified foster child” read as follows: “The term ‘qualified foster child’ means any individual who—
“(A) has not attained age 19, and
“(B) is living in a foster family home in which such individual was placed by—
“(i) an agency of a State or political subdivision thereof, or
“(ii) an organization which is licensed by a State (or political subdivision thereof) as a child-placing agency and which is described in section 501(c)(3) and exempt from tax under section 501(a).”
Subsec. (c). Pub. L. 99–514, in amending subsec. (c) generally, in par. (1)(A), substituted references to “qualified foster individual”, “such individual”, and “foster care provider” for references to “qualified foster child”, “such child”, and “foster parent”, respectively, and in par. (2) substituted “more than (A) 10 qualified foster individuals who have not attained age 19, and (B) 5 qualified foster individuals not described in subparagraph (A)” for “more than 10 qualified foster children”.
Statutory Notes and Related Subsidiaries
Effective Date of 2002 Amendment
Pub. L. 107–147, title IV, § 404(d), Mar. 9, 2002, 116 Stat. 42, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2001.”
Effective Date of 1986 Amendment
Pub. L. 99–514, title XVII, § 1707(b), Oct. 22, 1986, 100 Stat. 2782, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 1985.”
Effective Date
Pub. L. 97–473, title I, § 102(c), Jan. 14, 1983, 96 Stat. 2607, provided that: “The amendments made by this section [enacting this section] shall apply to taxable years beginning after December 31, 1978.”