Minimum Living Allowance (AGI) refers to the tax deduction applied to employees’ salaries based on their spouse or children, resulting in a higher net pay. There is particular interest in whether families serving as foster caregivers (protective families) can benefit from this allowance for the children under their care.
AGI for Foster Families
The Ministry of Family, Labour and Social Services encourages and supports increasing the number of foster families to provide a family environment for children under state protection. Thanks to recent outreach efforts, many people have registered as foster families, and recent figures show that the number of children living with foster families has for the first time exceeded the number of children housed in state institutions. Becoming a foster family generally means placing children who would otherwise live in state institutions into family homes so they can remain with that family. This allows couples who cannot have children, or families who want another child, to benefit from the program.
The rise in foster families raises questions in the field of social services. In Batman, a family caring for a child under foster status asked whether those in foster care qualify for the minimum living allowance. The tax office responded with an official ruling. The ruling clarified that, for the purposes of AGI, the term “child” refers to children who live with the taxpayer or are dependent on the taxpayer, and who have not reached 18 years of age, or 25 if still in education. Income tax guidelines define the terms “child” or “minor child” as children who live with the taxpayer, are supported by the taxpayer, receive alimony, or are legally adopted by the taxpayer.
Foster Families Do Not Qualify for AGI
According to the published ruling, foster families receive various payments from the state under the Foster Family Regulation, and the child’s education, health and other needs are met by the state. Because certain expenses are covered by the state, a foster child does not fall within the legal definition of a dependent child for AGI calculations and therefore does not qualify for the allowance in this context.
By contrast, the law explicitly allows AGI for legally adopted children. In such cases, AGI is calculated as a percentage of the annual gross minimum wage: 50% for the taxpayer, 10% for a non-working or income-less spouse, 7.5% for each of the first two children, 10% for the third child, and 5% for any subsequent children.
State Assistance for Foster Families
The ruling emphasizes that foster children do not qualify for AGI because they receive state support. Being a foster family is not the same as adoption. Foster children stay with families instead of state institutions while continuing to receive state-provided support. If a foster child is legally adopted, the child is entered into the family’s civil registry and state support ceases.
Under the foster family program, monthly payments are made to families based on the child’s age: 711 TL for children aged 0–3, and 1,066 TL for children aged 4–5. Older children receive allowances as pocket money as well, with monthly amounts for older children ranging roughly between 1,220 TL and 1,556 TL when allowances are included. The program also provides support for courses and offers foster family insurance payments.