maternity leave child allowance from government

[garyl888]

My wife was on maternity in parts of 2025 and received benefits/allowances from the government for our kids.  Since our kids don't have bank accounts, it's deposited into my wife's bank.  Are these considered foreign income to IRS?  Do we need to report these?  

[guywong]

Can you elaborate on your question?  I don't understand why maternity allowance from the government could be considered "foreign" income.  Foreign income is income earned in the foreign country, such as Canada or Mexico.  What government paid the maternity allowance?  Were the checks paid to your child or your wife?

I am in California.  Calif has a program called State Disability Income (SDI) where each employee pays into through the paycheck.  SDI maternity payment is not taxable because the employee pays the premium.

[DaveF1006]

Yes, these are considered foreign income, but whether they are actually taxable depends on the specific nature of the payments (maternity pay vs. child allowances) and the tax treaty between the U.S. and the country providing them.

If taxable, here is how it is reported.

1. Federal > Wages & Income. 
2. Scroll to the very bottom to Less Common Income.
3. Select Miscellaneous Income, 1099-A, 1099-C.
4. Select Other Reportable Income.
5. Description: Enter "Foreign Maternity Benefit" or "Foreign Child Allowance."
6. Amount: Enter the total in U.S. Dollars (use the average 2025 exchange rate).

@garyl888