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Child beneficiary SS income reporting

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    Child beneficiary SS income reporting

    Childbirth date 8/2/2015. The child born "out-of-wedlock". No civil union, no legal "domestic partnership" at time of death. Father died 2/15/2016. The child lives with his biological mother all year.

    Deceased ss child benefit is directly deposited in mothers bank account. Is benefit reportable on mother's return?

    My understanding is the amount of benefit is reportable to the entity that has the "legal right to receive it." Seems like a grey way to phrase it. Meaning "receive it" can be interpreted as a mechanical vs. financial meaning.

    In this case that is child only (biological parents not married at death). This is the child's only income. By itself does not warrant return filing.

    Is mother only fiduciary (or some other legal definition) vs. having "legal right to receive it" (on child's behalf or as her own.) Another words does ...she....report it on her 1040?
    Treasur2

    #2
    No... it is the child's income subject to child's reporting requirements for taxability, It is not passive income.

    Strange that it goes into Mothers account. Usually child gets a separate account for direct deposit of SS funds with Mother as custodian.
    Last edited by BOB W; 11-20-2020, 12:00 PM.
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

    Comment


      #3
      Instead of "Follow the Money," it's "Follow the SSN."

      Comment

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