Parents elect to report dependant (12 years old) income on their tax return. The dependant receives SSI due to parent's disability (also collecting SSI).
Where do we report the dependant's SSI income on the parent's return? Tia Neil
Supplemental Security Income (ssi) is not taxable. Do not report it.
As Art already pointed out, SSI isn't taxable and never goes on anybody's return. Since the parents are evidently required to file, I suspect that we're talking about Social Security Disability Income (SSDI), which may be taxable.
If the child is receiving SSDI the parents cannot include the child's income on their return. The child must file a return, including the child's SSDI, if the child is required to file. See the filing requirements for dependents in the 1040 instructions.
Phil Marti VITA/TCE Volunteer
My esteemed colleagues, Art & Phil, have it almost right.
SSI IS Social Security Income. As such it would get reported on the recipient's tax returns NOT the parent's returns. Like ALL OTHER SSA income it is only taxable when OTHER income exceeds a certain dollar amount, otherwise it is NOT taxable and a return is NOT otherwise required. So you'd only have to report this IF the child had other income and had to file a return on their own.
If all the other income for the child is investment income and the other rules apply, the parents can elect to report the child's investment income on their return. BUT please note - parent's can only elect to report a child's INVESTMENT income on their return - NOTHING ELSE.
If junior has a paper-route or babysits or works a summer job OR HAS INVESTMENT SALES reported in their name and SSN they have to file their OWN return.
Good luck, Gene E. Utterback, EA, RFC, ABA
Au contraire, as we say in Kansas.
See page 35 of Pub 525, which specifically excludes SSI from potentially taxable Social Security benefits. Realizing that IRS pubs aren't law, let's look at the law. IRC 86 defines Social Security Benefits as benefits arising under title II of the Social Security Act. In IRC 51 we have a reference to SSI, which is paid under title XVI of the Social Security Act.
'Nuff for me to conclude that Pub 525 is right, and SSI is never included in taxable income or reported on a return.
Phil Marti VITA/TCE Volunteer
Hang in there Phil, you got it right.
Also note that many of the clients I see use the term SSI when they really mean to say SSDI or social security disability. I now ask anyone who says SSI, what they really mean. SSI is not reported on the SSA-1099. Another bit of proof that it is not social security benefits.
Ah, I see where you were misled. SSI is Supplemental Security Income. That's never taxable.
I have been DUPED, TRICKED, I say - flim flammed!! This is outrageous, unconscionable and other big words that elude me at the moment. That's what I get for responding off the cuff while making assumptions and "half-reading" the OP.
I do believe that I may stand corrected (hard to argue with a cite) - my apologies, Gene E. Utterback, EA, RFC, ABA
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