I am a foster parent and provide daycare services to foster kids placed with other families. Is the "foster parent daycare" taxable income? I am paid by the state's Child Care Services for a portion of my fee and the remainder is paid by the Department of Social Services (included on my foster care payment check).

I used to be paid the remainder in cash (the foster parents were reimbursed directly), but now that it is included in my check as "foster parent day care", I am questioning myself about whether it IS taxable income. I guess I am just hoping it is not, because a large portion of my income is from foster kids.

Any advice?

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