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Social Security Social Security benefits and tax issues


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Old 03-23-2010, 03:21 PM
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Are Social Security benefits paid to minor children for deceased parents taxable?

I would like to find out whether or not the social security benefits paid directly to minor children are taxable in way to the surviving parents personal tax return?

Looking forward to hearing from you!



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Old 10-31-2010, 10:35 AM
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" . . . whether or not the social security benefits paid directly to minor children are taxable in way to the surviving parents personal tax return?"------> In most cases, a child's income total, provisional inocme level, is less than $25,000, no benefits are taxable. If the total is greater than $25,000, a percentage may be taxable and should be calculated according to directions on the 1040. For instance, if the child's provisional income is $26,000, then as $26,000> $25,000 the threshold, the child's taxable Soc. Sec benefit is either LESSER of $500, 50% of $1,000, $26,000-$25,000, or 50% of the Soc. Sec. benefits. If the Soc. Sec. benefits of the child is $10,000, then 50% of $10,000 is $5,000, so in this case, the child should pay tax on $500, $500<$5,000, at the child's marginal tax rate.Some child may have a certain level of income,i.e., child model for huggies or baby foods or etc..



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