Ray v. United States

Opinion and Order

JAMES L. GRAHAM, District Judge.

This tax case concerns the “foster care payments” exclusion from gross income. See 26 U.S.C. § 131. In general, when a taxpayer receives payments from the State to provide foster care to an individual who lives in the taxpayer’s home, the taxpayer may exclude those payments from gross income. This case involves the meaning of “foster care” when the recipient of care is older than age 18. The question presented in this case is whether the § 131 exclusion is available if the taxpayer providing care is the biological parent or guardian of a…