Is Dependent's Social Security Taxable?

[Lyle]

If a taxpayer claims his mother as a dependent (qualifying relative) must her Social Security (only income) be reported on taxpayer's return?


Lyle

[Gary2]

If a taxpayer claims his mother as a dependent (qualifying relative) must her Social Security (only income) be reported on taxpayer's return?

For some reason, this gets asked a great deal, even though it ought to be an easy answer: No, you never report another person's income on your tax return, with one limited exception.

The exception is if Form 8814, Parent's Election to Report Child's Interest and Dividends is being filed. Note that this might be done even if the child isn't a dependent (e.g. fails the residency test), but it's strictly limited to interest and dividend income (including capital gains distributions on a 1099-DIV), and cannot be used if the child has other types of income subject to the kiddie tax.

[Burke]

The income is not reported on the TP's return claiming the dependent. However, it is used to determine if the support qualification is met. This calculation is done outside the tax return.