I receive money for foster children from the state. Where do I record this money

[MargaretL]

Foster care payments are not taxable income and you don't have to report it anywhere if the foster individual is living in your home and he/she was place there by an agency of a state.

 Per IRS: (page 31):"Foster care providers. Generally, payment you receive from a state, political subdivision, or a qualified foster care placement agency for caring for a qualified foster individual in your home is excluded from your income. However, you must include in your income payment to the extent it is received for the care of more than 5 qualified foster individuals age 19 years or older. 

A qualified foster individual is a person who: 

1. Is living in a foster family home, and 

2. Was placed there by: a. An agency of a state or one of its political subdivisions, or b. A qualified foster care placement agency."