Indirect Child Care Fees

[Uncle Sam]

How should this be reported by my client?
Any different than any other type of income?

My client's son and girlfriend have a child.
The girlfriend gets money from the government for child care expenses, where my client is the provider.

The check goes to the girlfriend, she endorses the check, and hands it over to my client.

The government doesn't issue the money or any form to my client, as the case is listed under the girlfriend's name.

The girlfriend isn't my client (yet).

My client should report the income, right?

Is there any special way to report it?

[Snaggletooth]

No Income

No strings attached to what the woman gives to her significant other, even if one could presume it is to reimburse for support. Not income. Conceivably could even be designated as a "gift."

HOWEVER, the amount paid will probably disqualify both the woman and the man from claiming the child. This amount paid by the government would enter into the formula where support of 51% is supported.

[erchess]

But Snags

It is not the significant other who is providing care and getting the money that ultimately comes from the government, it is the s/o's parent. I don't know whether that changes anything or not.

[taxmom34]

is your client the grandmother? and is she running a daycare where she cares for other children as well.

[AJsTax]

No income

The money she receives in this situation should be considered just the son and his girlfriend helping with the household expenses. That is not taxable income.

[taxmandan]

How should this be reported by my client?
Any different than any other type of income?

My client's son and girlfriend have a child.
The girlfriend gets money from the government for child care expenses, where my client is the provider.

The check goes to the girlfriend, she endorses the check, and hands it over to my client.

The government doesn't issue the money or any form to my client, as the case is listed under the girlfriend's name.

The girlfriend isn't my client (yet).

My client should report the income, right?

Is there any special way to report it?

It's income to your client, she's providing a service for the money. Sch. C income is where I would put it, just like any child care provider.

If the g/f becomes a client, at least you'll know she isn't paying the child care expenses.