Treasury is reviewing the recently enacted tax law changes, including the new Marijuana Wholesale Tax. Developing clear and accurate information for tax stakeholders is our top priority. This guidance will be posted to our website in the coming weeks.
Is foster care income taxable?
Generally, foster care payments are not subject to federal or Michigan income tax. However, in a few situations when you receive a W-2 or 1099, you will be subject to federal tax. Those payments would be subject to Michigan tax to the extent that they are included in your adjusted gross income.
Note: Any nontaxable foster care payments must be included in total household resources.