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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.
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Join Date: Jun 2002
Location: Texas Hill Country
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.
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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