Emergency-related state tax relief available for taxpayers located in twelve northern Michigan counties impacted by March 2025 storms.
Is foster care income taxable?
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.