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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.

  • Social security benefits are very rarely paid to minor children. Almost always any kind of benefit is paid to the parents. The fact that the money is deposited in your wife's name backs that up.. – DJClayworth Apr 27 '16 at 3:26
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    The Social Security Administration grants benefits to minor children of parents that receive benefits. In this case, the children receive the benefits because I receive benefits. My wife is not entitled to benefits; she is too young. The account was set up in her name because we were not married at the time the benefits were approved by the Social Security Administration. The money can be used only for the children's necessities. – A. R. Calvo Apr 27 '16 at 14:29
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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 $950. If the child is blind, the Internal Revenue Service won't require them to file a return unless the total is in excess of $2,400. 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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