710:50-15-69 Deduction for foster care expenses

(a) General provisions. In taxable years beginning after December 31, 2018, an income tax deduction is allowed to individual taxpayers who contract with a child-placing agency to provide care for a foster child. (b) Deduction. The deduction is for expenses incurred to provide care for a foster child not to exceed Five Thousand Dollars ($5,000.00) or Two Thousand Five Hundred Dollars ($2,500.00) for married persons filing separately. (c) Qualification. A taxpayer must be under contract with a child-placing agency, as defined in Section 402 of Title 10, for at least six (6) continuous months regardless of the tax year during which the care occurs. If a taxpayer is under contract with a child-placing agency and providing care for a foster child for at least six (6) continuous months, but less than six (6) months of the tax year, taxpayer may claim only a pro rata share of the credit. For example, if a qualifying taxpayer contracts with a child-placing agency and begins providing care for a foster child on May 1, 2018 and ending on March 31, 2019, taxpayer may deduct up to $2,500 (3/6 x $5,000.00) for expenses incurred in 2019 on their 2019 income tax return.