Pay Back Disability?

- B
- bllybb2
  
  Contact options for registered users
posted
8 years ago

Mon, Feb 8, 2016 7:59 PM

New client has a daughter that has been drawing SS Disability for a number of years. Mother needs to file several years of 1040's. Mother definitely provided more than 1/2 support for daughter. If mother claims daughter on the 1040's could daughter possibly have to pay back some of her disability?

Thanks for any comments-

Joe Vance EA

- S
- Stuart Bronstein
  
  Contact options for registered users
Vote on answer
posted
8 years ago

Tue, Feb 9, 2016 4:38 AM

I'm not an expert on this kind of thing, but I seriously doubt that claiming her daughter as a dependent will have anything to do with the daughter's disability benefits. It seems to me that the two issues are completely independent.

- D
- D. Stussy
  
  Contact options for registered users
Vote on answer
posted
8 years ago

Tue, Feb 9, 2016 4:40 AM

1) Not a tax question. Maybe you should ask on "alt.social-security.disability".... 2) SSDI is the same regardless of whether the person is a dependent or not. 3) SSI component of SSDI may be affected. That item is needs-based. 4) If there's a tax payback for having including it in income, see "claim-of-right" (tax term).

Tax issue: Are you certain that the daughter is a dependent? Since she receives SSDI, she is obviously an "adult child." Disability is not an exception to the "gross income" < "exemption amount" test. SSDI is includible in income to the same extent as SSRB, so it's possible that it might have been subject to tax, especially if there were other income.