Jul 27, 2016 - 08:55 AM
There is no deduction available to her for these payments. In addition, your receipt of these funds is taxable earned income that should be reported. If you wanted to avoid tax consequences you would have to get creative and also delay the benefit. For example, your Aunt could leave you a bequest in her Will. That bequest would be income tax free. However, you would obviously have to wait to receive it.