Social security survivor benefits for children can be considered taxable income under certain circumstances. The taxability of these benefits depends on the child's total income and the amount of the benefits received.
- Legal Right to Receive Benefits: The benefits are included in the taxable income of the person who has the legal right to receive them. If a child receives social security survivor benefits, those benefits are considered the child's income.
- Calculation of Taxable Benefits: To determine if the child's benefits are taxable, you must add one-half of the child's social security benefits to all of the child's other income, including tax-exempt interest. If this total exceeds the base amount for the child's filing status, part of the benefits may be taxable.
- Base Amounts: For a single child, the base amount is $25,000. If the total of one-half of the child's benefits plus all other income exceeds this base amount, then a portion of the benefits may be taxable.
- Taxable Portion: Generally, up to 50% of the benefits may be taxable. However, if the total of one-half of the benefits and all other income exceeds $34,000, up to 85% of the benefits may be taxable.
- Reporting Requirements: If any part of the benefits is taxable, it must be reported on Form 1040 or 1040SR. The net benefits are reported on line 6a, and the taxable part on line 6b.
- Non-Taxable Benefits: If the total income does not exceed the base amount, the benefits are not taxable. In such cases, the net benefits are still reported on Form 1040 or 1040SR, line 6a, with 0 entered on line 6b.
In summary, social security survivor benefits for children are not automatically taxable. The taxability depends on the child's total income and the amount of the benefits received. If the combined total of one-half of the benefits and all other income exceeds the base amount for the child's filing status, then a portion of the benefits may be taxable.
Sources:
Publication 1380
Publication 915 (2023)
Publication 525 (2023)
Rev. Rul. 57-344
Publication 17 (2023)
§ 86. Social security and tier 1 railroad retirement benefits
