My daughter is 19 years old. In October of 2013 my wife and I were granted guardianship of her and she began receiving SSI benefits. At the recommendation of the attorney who did her guardianship paperwork he advised that we collect part of her SSI payment for room and board which we are doing. How will this affect our tax return?===== =>>>> In most cases a custodial parent /guardian receives a check for a child’s benefits from SSA. While this check is made out in the name of the custodial adult, the income is nonetheless paid to the child. Because of this, you don’t report your child’s Social Security benefits on your return, even when the check comes in your name. Because SSI benefits are not taxable by the IRS, you will not pay State income taxes on this money either.however, Custodial parents must keep track of their child’s taxable benefits – of which SSI isn’t included – and report those on a return made in the child’s name.If you are the representative payee for your daughter who receives SSI benefits, you must report any income that your daughter living in the your household receives.
Should we expect to receive a statement from SSI?========>>>>>>>>no ssa1099 form; SSI benefits are intended to help pay for your food, clothing, and shelter and are not subject to Federal income tax. Because of this Social Security does not report what you receive from SSI to the IRS, or send you a 1099 at the end of the year.however, Some assistance programs require a print out of your benefit amounts for the prior year. For these cases Social Security can prepare a special benefit letter for you with the payment amounts you received each month of the previous year. Social Security representatives refer to this document as an “SSI 1099″ even though it is not reported to IRS.
Does my daughter need to file taxes on her SSI benefits? ========= >>>>>>>>no; The IRS specifically excludes SSI payments from taxation, and children who qualify for these benefits aren’t taxed on them. Because SSI income is partially need-based, the IRS doesn’t require recipients to report the income. While you don’t report SSI income when you submit a child’s Form 1040, you must list all other types of Social Security benefits as income, including survivor benefits and any additional disability payments the child receives.