What about taxes on respite care payments?

Payment for respite care is taxable income; providers will have taxes deducted from their earnings. Respite providers for foster parents licensed through DLR, will have taxes deducted in their payment received from DSHS. Persons providing respite for foster parents licensed through CPAs are paid directly by the private agency. Because DSHS maintains a contract with the CPA for its services, taxes for respite payments are deducted by DSHS before the funds are sent to the CPA for disbursement to the respite provider.

Each respite provider that is receiving payment must complete a W-9 tax form prior to providing care. Because each person’s tax status is different, the amount of tax deducted from their payment will vary.