Childrens social security

[thomtax]

For some reason am drawing blank and can't seem to find situation in book. And it's been some years since I had one of these.

Beginning in 2013, two children each received social security benefits from father's disability, who began receiving disability benefits in 2013. The benefits are paid in the child's social security number. There is no problem with the parent providing over 1/2 of the support.

How, if at all, should the ss benefits received for the children be reported. Also, the benefits were paid in 2013 for 2010, 2011, 2012 and 2013 (approx. 3,000 per year.)

Your help to a suddenly blank mind will be appreciated.

LT

[Burke]

The childrens' SS benefits are reported on the childrens' respective returns. They may not have to file if this is all they receive.

[ddoshan]

The childrens' SS benefits are reported on the childrens' respective returns. They may not have to file if this is all they receive.

Interesting question as to if the children would have to file a return if they are indeed considered dependents which I am a little suspect about. I don't know but it seems that it could very well be possible. If they got 12K in SS benefits all in 2013. Would you have to figure wages (0) plus one-half of SS which would run about 6,000.

[thomtax]

Thanks Burke and ddoshan

Thanks to both of you for your replies. I had a health issue which took me out of service for a couple of days and am just now catching up to the post.

The amount of money for one was 11,600 and the other 14,516. However this money was for 2010, 2011, 2012 and 2013, The average per year was a little over 3,000. Even using the total amount received this year, they appear, after using the worksheet, to qualify as dependents. The mother is highly paid. They are receiving this money because of father's medical situation.

I know that with multiple years involved, there is an alternative way of calculation which often results in no tax consequence for the individual but don't know if different rules for dependents.

[Burke]

The only rule that is different about dependents is the exemption as to who claims. All other rules about income are the same as for any taxpayer filing as Single.

[FEDUKE404]

Caveat perhaps

Thanks to both of you for your replies. I had a health issue which took me out of service for a couple of days and am just now catching up to the post.

The amount of money for one was 11,600 and the other 14,516. However this money was for 2010, 2011, 2012 and 2013, The average per year was a little over 3,000. Even using the total amount received this year, they appear, after using the worksheet, to qualify as dependents. The mother is highly paid. They are receiving this money because of father's medical situation.

I know that with multiple years involved, there is an alternative way of calculation which often results in no tax consequence for the individual but don't know if different rules for dependents.

You do have the ability to recalculate any taxable 2013 Soc Sec benefits by revisiting the tax returns that were/would have been filed for the children during tax years 2010, 2011, and 2012. But if none of the "total" benefits received in 2013 resulted in a tax impact, via some taxable Soc Sec benefits now appearing, there is really no need to do unnecessary work for those earlier years.

Something you may not have considered: Since "the mother is highly paid" is there any possibility the children may have been and/or are now exposed to some Form 8615 issues, aka the infamous "kiddie tax"? That could really make for some interesting scenarios.

Otherwise, as others have noted, the main issue for now and until the children quit receiving Soc Sec (disability?) benefits at age 18 / completion of high school, is whether the parents are still providing >50% support for the children. In situations such as this, it is not uncommon for the parent(s) to "lose" their deduction.

Good luck!

FE