Financial Considerations for Foster Parents

There are many things to consider when you become a foster parent, from helping your foster child feel welcome on the first day and creating a safe and stable home environment, to building a relationship with biological parents and how to cope when a foster child leaves your care. Of course, it’s also important to understand any financial considerations associated with fostering, to set your mind at ease.  

Generous Compensation

While there is a licensing process and basic requirements (click here for more information on our frequently asked questions page), there are no fees involved when choosing to open your home (and heart) to youth in need in the state of Illinois. As noted on our website, “All licensed foster parents are compensated for their work with and support of our children. The specifics are established in our contract with DCFS and depend on various factors that will be explained throughout the licensing process.” These may include room and board, school supplies, transportation, clothing allowances, and other possible reimbursements for costs associated with fostering. With that said, “You must also have sufficient financial resources to provide for yourself and your family.”

Medical Coverage & Similar Expenses

While medical expenses (such as doctor’s visits, prescriptions, and emergency care) may be covered by their biological parents’ private insurance plans, a majority of our children in foster care (aged birth through 21) receive healthcare coverage from the state of Illinois or the U.S. government. In addition, Camelot Care Centers provides in-home counseling, case management, and after-hours support. We also provide extensive training and paid respite days for our foster parents. After all, they are vital team members committed to making a difference in the life of a child (or multiple children) and should be cared for too!

Tax Considerations & Additional Support

“For tax purposes, a foster parent is someone who has had a child placed with them by either a court order, judgment or authorized placement agency (such as a state or local government organization),” as noted by Experian. And foster parents may qualify for some significant tax breaks and benefits, including the Child Tax Credit (for more information, check out this article from NerdWallet). According to eFile, “If you receive government foster care payments, these are considered nontaxable income and thus do not need to be reported on your tax return.” And on September 27, 2023, the Biden-⁠Harris Administration announced new actions to support children and families in foster care, which can be found here. 

Now that you know the financial considerations for foster parents, are you ready to take the next step? If you live in the state of Illinois and are ready to become a foster parent in the New Year, click here!

Every child needs and deserves to grow up safe and protected from abuse and neglect, and caring foster parents offer children support and stability when they need it most. At Camelot Care Centers, we specialize in higher-level foster care for children and adolescents that need extra support. We partner with our foster parents/homes to provide trauma informed care and additional services, including in-home counseling, parent support and training, tele-psychiatry, and therapeutic mentoring, to maintain children at the least restrictive, yet most appropriate level of care.Camelot Care Centers (“Camelot”) is a Child Welfare Agency.

https://www.whitehouse.gov/briefing-room/statements-releases/2023/09/27/fact-sheet-biden-harris-administration-announces-new-actions-to-support-children-and-families-in-foster-care/