Tax Question ...

[robert51]

So i know the VA comp we get is NOT taxed but on a retrune you have to tell the SS you received, and any interest but what about the amount you get for children .. i have a 19 year old who received a payment from SS last year in his name.. and a daughter who received SS funds as she is 17 do i include their SS on my tax form as they live with me?

[Pete53]

You will get a 1099 from Social Security. You report that and that only. If you file a return and you should to get your rebate check for you and the children.

[Ricky]

Robert - this is a quick look at how the IRS looks at taxes on SS.

IRS TAX TIP 2008-31

How much, if any, of your social security benefits are taxable depends on your total income and marital status. Generally, if social security benefits were your only income, your benefits are not taxable.

Taxpayers who receive little or no income in addition to their Social Security Benefits would typically not need to file a tax return. However, you must file a 2007 tax return to receive an economic stimulus payment from the federal government.

If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status. Your taxable benefits and modified adjusted gross income are figured in a worksheet in the Form 1040A or Form 1040 Instruction booklet.

Before you go to the instruction book, do the following quick computation to determine whether some of your benefits may be taxable:

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First, add one–half of the total social security you received to all your other income, including any tax exempt interest and other exclusions from income.

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Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.

The 2007 base amounts are:

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$32,000 for married couples filing jointly

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$25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouses at any time during the year

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$0 for married persons filing separately who lived together during the year

Taxpayers filing a 2007 return to receive an economic stimulus payment from the federal government must show at least $3,000 in qualifying income. Social Security benefits reported in box 5 of the 2007 Form 1099-SSA are considered as qualifying income for the stimulus payments.

If you do not have a Form 1099-SSA, you may estimate your annual Social Security benefit by taking your monthly benefit and multiplying it by the number of months during the year you received the benefits. You will then enter that number on Line 20a of Form 1040 or Line 14a of Form 1040A.

For additional information on the taxability of social security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Publication 915 is available on the IRS Web site at IRS.gov or by calling 800-TAX-FORM (800-829-3676). You can also visit IRS.gov for additional information about the economic stimulus payments being sent to taxpayers in 2008.

Link

[Ricky]

Another tidbit:

The taxable benefits, if any, must be included in the gross income of the person who has the legal right to receive them. For example, if you and your child received benefits, but the check for your child was made out in your name, you must use only your own portion of the benefits in figuring if any part is taxable to you. Half of the portion that belongs to your child must be added to your child's other income to determine if any of those benefits are taxable to your child.

[robert51]

Thanks for the info guys.... so Ricky... my SS and any income goes in my gross income slot...and my daughter SS child benefit and any other income goes into childs other? My daughter also has a small trust fund i set up when she was 12 so the interest in her trust fund goes into there also.. ??? Thnaks robert51

Edited February 15, 2008 by robert51