Disabled Child Receiving Supplemental Security Income

[peggysioux]

Just need confirmation from fellow tax preparers as I can't find the proper regulations stating what I have in my memory - I was told a while back that if child receives SSI, supplemental security income, the income is treated as a welfare payment which is support provided by a third party and support test would not come into play. Therefore, parent would not need to claim that income. On the other hand, if child is receiving SSDI, then the monies received would be considered supplied by child and we would have to look at who is supplying more than 50% of support. Do I have this correct??

[Koss]

SSI vs. SSDI

If you are applying the support test for a qualifying child, then, yes, I agree. My reading of Pub. 17 (page 34) is that SSI is a form of welfare that is in the same category as food stamps and subsidized housing. It is considered support provided by the state--not by the child.

Social security disability is something very different, and it is in fact considered to be the child's own money. The question that arises then is whether the money was actually used to support the child (or was it put away in a savings account or something?)

However, for the support test for a qualifying relative, the rules may be a little different...

BMK

[peggysioux]

Ssi

Thanks Burton!!

Peggy Sioux