Kinship & Foster Caregiver Guide
Caregivers (Community Academy)
Difficulty-of-care payments for caring for an individual in your home are generally EXCLUDED from income (Notice 2014-7).
Foster care payments received from a qualified agency are generally excluded from income.
Credits for a child in your care depend on tests stated carefully: relationship, residency (the child lived with you more than half the year for EITC), and support. CTC / Credit for Other Dependents / EITC each have their own tests — this guide states them as education, and personal cases route to a pro.
Education only — not personal tax advice. Personal questions route to a credentialed pro (see Pros & Trust).