This is a two part question but I will try to be clear;
I have a daycare mom who got a childcare grant through the local college. I had to fill out a form when she applied for the grant stating how much I charge, what my DC license number is and what my SS#/EIN is. When mom got the grant money it was in a check form ($1040.00) which she gave signed over to me and I credited the grant amount to her. She is now asking me for my EIN # and the total amount paid for her childcare for her taxes.

The same mom also applied to the state for assistance because her grant would not cover her childcare 100% and she had a balance due of $280 at the end of Dec. 2010. She paid me the $280 so I could close out my books for the year. Now, I just got papers in the mail from the state assistance program saying she qualifies for assistance and the state is backpaying to the date her grant ran out. So now I will be paid for the time the $280 covered and she is asking to be reimbursed for the money (Which her worker is saying is okay to do). So now if I reimburse her the $280 when I get it from the state, what do I say is the total amount paid to me by her for childcare so she can claim it on her taxes?
I don't think I should include the $280 as a payment by her, since the state is going to pay it and they will send me a 1099 at the end of the year with that amount included as money paid to me by them. I also don't know if the grant check she gave me should be counted as money paid to me by her or if it is from the college since they asked me all my ss#/EIN info when I filled out my portion of her grant application.

Anyone know what I should give her for a total paid?

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The parent is only entitled to claim towards her child care tax credit amounts she paid out of her pocket. The college grant is not something she paid so she can't claim this. She did pay you $280 for child care assistance out of her own pocket in 2010 so technically this can count towards her child care tax credit. However, she will get this money back in 2011, so the question is whether she can claim it towards her credit in 2010? I don't think so. If she did claim the credit in 2010 she would have to pay it back in 2011 because she won't qualify for the credit in 2011 (assuming she doesn't pay you anything out of her pocket for child care in 2011).

Therefore, I wouldn't give her anything and tell her she is not qualified to claim the credit in 2010.

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