Discussion:Social security benefits for minors
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Discussion Forum Index --> Tax Questions --> Social security benefits for minors
| 17 January 2007 | |
| Am I correct that minors who received social security benefits (from death of a parent) of $11,000 in 2006 must file tax returns? Seems kind of silly considering that is the only thing on the return and it is not taxable, but I don't see any indication why they are eligible to NOT file. Please tell me if I'm missing something here. | |
Death&Taxes (talk|edits) said: | 17 January 2007 |
| http://www.irs.gov/taxtopics/tc351.html | |
| 17 January 2007 | |
| Thanks for the responses. I thought minors with unearned income over $8500 needed to file, but apparently not. Forgive my ignorance here, but does this then get reported on the mother's return? Her social security benefits are 50% taxable because of her income. Again this is an area I have no experience with so any information would be greatly appreciated. I find myself coming to this site more and more lately... | |
Death&Taxes (talk|edits) said: | 18 January 2007 |
| No, each child's Social Security belongs to them. | |
| January 18, 2007 | |
| Social security is not taxable unless gross income exceeds certain amounts. Also, SS is not included in the $8500 of unearned income that you are referring to.
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| January 18, 2007 | |
All Income Limits:
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| 18 January 2007 | |
| How do SS benefits received by child affect Mom's ability to claim dependency exemption? Old rules for dependency exemption state "Over half of dependent's total support for that calendar year must have been furnished by taxpayer." (quoting from 2004 Master TAx Guide). New rules for Qualifying Child state: "The child must not provide more than 1/2 of their own support for the year." Under old rules, Mom probably could not claim child's exemption unless she showed that she provided more than the SS benefits received. Under new rules, do SS benefits count as having been provided by child for him/herself or do benefits count as having been provided by some third party??? | |
| 18 January 2007 | |
| I doubt the parent permitted the child to spend much of that on his own support. | |
| 18 January 2007 | |
| Depends on the circumstances. I had a widow years ago who could not have survived without using all of the benefits received by her four kids and herself to pay mortgage, groceries, clothing, etc. | |
| 18 January 2007 | |
| If the child uses the SS money for other than support (car, music, stuff), then it doesn't disqualify mom to claim the child as a dependent. If mom uses child's SS for household expenses, then have to look at the 1/2 rule. Stupid, but that's how it is. We had a discussion of this in the classes I taught on the subject when the law changed. | |
Death&Taxes (talk|edits) said: | 18 January 2007 |
| Or if possible, Mom can put the money into savings in the children's accounts to prevent it being lumped into household expenses. | |
| 25 July 2007 | |
| Is there anyone out there who can help me decide if my children could qualify for s.s. for assumed death of their father. He has been missing
since June 2006 and is assumed dead, with no proof. Seems like there is a way to get him declared legally dead without a body. Any input? We reside in Louisiana. | |
| July 25, 2007 | |
| Ashley, my heart goes out to you, so sad and sorry for your loss and theirs. I think you probably need to do something legally, but you can call the SS Administration and talk with someone there for free. Start at www.ssa.gov. God Bless. | |
Bottom Line (talk|edits) said: | 26 July 2007 |
| Ashley - I agree with JR1, contact the Social Security Administration. I'm sure they've run into this situation before. You may need to talk with more than one person. (Frequently the person that answers the phone is the low person on the totum pole.) Be prepared to provide some information as to why he is assumed deceased as opposed to missing. You may be forced to go through legal proceedings to have him declared dead. Your local police department may be able to give you advice on that. | |
| 26 July 2007 | |
| To get some additional background information prior to contacting SSA or a local attorney, you might want to try a Google search for law message boards. For the most part contributors to this board specialize in taxation, so most of us have little detailed information to offer. | |
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