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tax question: SSA survivor income
Old 02-20-2011, 12:57 PM   #1
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tax question: SSA survivor income

I'm helping someone with her taxes.
How to handle SSA benefit paid to her child?
Need to go on the tax return at all?

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Old 02-20-2011, 01:06 PM   #2
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She (the child) should have received a form SSA-1099 SS Benefit Statement, which should have the child's name in Box 1.

On the back of the form is a simple worksheet that gives you a quick estimate if taxes have to be paid. She (the child) should be filing in her own name and not combining the income with the parent. I would doubt if any tax nor filing has to be done.

Here's the reference:

Publication 17 (2010), Your Federal Income Tax

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Old 02-20-2011, 01:12 PM   #3
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Khan, as I understand it, the tax burden falls on the legal owner of the benefits. If the SS payments are made to the child only, the income should not be included on her mom's return. See Page 4 of IRS Publication 915.
Numbers is hard.

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Old 02-20-2011, 01:22 PM   #4
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We got into this when the grandkids lived with us. We couldn't claim them on our income tax because their income exceeded the dependency test. That's step #1. We did their own returns on TurboTax because we were having federal withholding on their monthly payments.

I think there is the ability to combine their income with the parents income. You'll have to check with IRS on that.
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Old 02-20-2011, 01:26 PM   #5
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Originally Posted by Khan View Post
I'm helping someone with her taxes.
How to handle SSA benefit paid to her child?
Need to go on the tax return at all?

May not have to file, depends on how much in benefits the child received.
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Old 02-20-2011, 07:29 PM   #6
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I report it on my son's tax return. The checks are made out to me stating that it is for his benefit.

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