Income tax on children's social security income
How do you declare in the tax return the social security benefits of minor children? In our case, the social security administration deposits the checks every month in a bank account that is on my wife's name. The SSA-1099 forms are issued as follows: "my wife's name" for "the child's name." There is a 1099 form for each child. If we file as married filing jointly, do I have to include the children's social security benefits in our tax declaration as income, or do we prepare a tax declaration for each child separate from my return? The question has to do with income taxes in the USA.
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The IRS won't treat your child's Social Security benefits as your income. In fact, you cannot include them in your income even if you wish to. The only type of minor income you can elect to include with your own is investment or dividend income. However, if your child is a minor who must file a return because of Social Security benefits, you are responsible for signing and filing the return if the child is too young to do so herself.
If a minor child receives only Social Security survivors' or disability benefits and other unearned income, she / he must file a return if the total of his unearned income exceeds 0. If the child is blind, the Internal Revenue Service won't require them to file a return unless the total is in excess of ,400. If the child also receives earned income, such as wages, they may have a higher filing limit.
Despite the fact that you cannot claim your child's income as your own, you are allowed to pay the child's tax obligation (if any) if you want to, and you may provide general information to the IRS about the return. If you sign the return, or if the child identifies you on the return as a "third party designee", you may act as your child's representative during all interactions with the IRS concerning that particular tax return.
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