Odd taxes: Orphan Tax

Nebraska became the 12th state to prohibit the imposition of an orphan tax which is when a state diverts federal survivor benefits for youths in foster care to help reimburse the costs of their care.

The number of questions I had when I read this was astounding, but also at one point I wanted to get an LLM in tax law, so it tracks for me.

Federal HHS notified Governors in 39 states to stop the diversion of survivor benefits.

Governing | Nebraska Safeguards Foster Youth Benefits by Ending ‘Orphan Tax’