Verify that the placement meets the definition of foster care in SI 00830.410A.1. Use documents in the individual's possession, field office or regional precedents,
or contact with the agency. If a precedent has been established, document the file
to show this.
Generally, accept the allegation of the placement agency as to its nonprofit (tax
exempt) status without further verification.
NOTE: Determinations of tax exempt status are made by the Internal Revenue Service (IRS),
and in a few situations where the status is unknown or questionable, it should be
verified by seeing the agency's tax-exempt IRS letter, or by contacting IRS.
Assume that the payment made to the provider is a foster care payment (i.e., is to meet the needs of the individual in care) and is not income to the provider,
unless there is evidence to the contrary.
If the provider is an SSI recipient or deemor and evidence indicates a payment includes
additional monies above the foster care payment, verify the purpose(s) of the payment and the amounts involved using documents in
the individual's possession, FO or regional precedents, or contact with the agency.
Consider any payment in excess of the amount paid to meet the needs of the individual
to be income to the care provider.
NOTE: This income is usually unearned income but may be earned income (see RS 01802.000 for self-employment earnings).
If the care provider is not self-employed and evidence indicates a payment was made
for a specific service (e.g., $20 for shopping assistance), accept the care provider's
signed allegation of any cost of providing the service (e.g., $5 automobile expense).
Deduct the cost from the payment (SI 00830.100) and consider the remainder to be unearned income.