Rec’d Form 1099-R Calstrs disability coverage b paid to my minor dependents using their ssn# how to file Form 1040 - required to file taxes. How do I report?

[queenteza]

My husband and I are filing mfj. Do i include the payments to my children in our tax return?

[kerriP · Accepted solution]

Do not include those payments if they are not issued in your or your husbands social security numbers on your tax return

CalSTRS disability benefits are considered taxable pension benefits.  ( check the code on the 1099-R)

However, your minor children will likely be below the income level required to file a tax return.  $6350 unless they have investment income.

[queenteza]

Thank you so very much for answering my question. This answer helped me tremendously...feeling so relieved that I am not required to file a tax return since their income level is below $6,350.  Again, THANK YOU for your professional answer.   Blessings,  Tessie

[ad0909]

What is the 1099 r income limit for 2021?

[xmasbaby0]

@ad0909 Your question does not make sense.   There is no limit for 1099R income.   If you receive a 1099R for 2021 you will need to enter it into your tax return.  The software will calculate whether you owe any additional tax on that income when you combine it with your total 2021 income.

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

[xmasbaby0]

@ad0909 Is the income from your retirement account your ONLY income for 2021?   Are you trying to figure out if you need to file a tax return?

Who has to file?

http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

[ad0909]

Sorry let me clarify.  My children will be receiving 1099r from calstrs which is a disability benefit paid to each of them.  It was stated earlier that if the receive less than $6950 they do not need to file what is threshold for 2021

[xmasbaby0]

That $6950 amount you saw in this thread was from a long time ago when that was the standard deduction for a single filer.   Here are the standard deduction amounts for 2021:

2021 STANDARD DEDUCTION AMOUNTS

SINGLE $12,550  (65 or older + $1700)

MARRIED FILING SEPARATELY $12,550  (65 or older + $1350)

MARRIED FILING JOINTLY $25,100  (65 or older + $1350 per spouse)

HEAD OF HOUSEHOLD  $18,800  (65 or older +$1700)

Legally Blind + $1350

Again:

Who has to file?

http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

[ad0909]

I guess that's my question? What I read earlier is to not include in my taxes as it is distributed in my dependents ss#.   Do they need to file if it is less than standard deduction? 

[MarilynG1]

Income reported on a 1099-R is considered 'unearned income'. If your child's unearned income exceeds $1,100, they need to file their own return.

Click this link for details on When Does a Minor Need to File a Tax Return

However, a parent can elect to claim the child's unearned income on the parent's return if the child is not required to file. 

Click this link for more info on Reporting Children's Unearned Income.