According to the January ruling, state payments for “difficulty of care” now qualify as nontaxable income and will be treated the same as foster care payments. The average family like Freeman’s could see $2,000 to $3,000 in tax relief, depending on the amount of state aid received.
“This decision has national impact,” Freeman said. “I think we connected the dots in a way that gave the IRS a solution that could be made to work.”
Read more here: http://www.theolympian.com/2014/02/13/2981840/olympia-dads-persuade-irs-to-give.html#storylink=cpy