Q. Do I need to file a separate return for my 3 year old to report this income (Federal and State -VA)?
A. No.
Q. Does this income need to be reported as this is his only income?
A. No. Do not report it on your tax return and do not file a separate tax return form him.
Social security payments to children.
If the Social Security (SS) payments, including SS disability, were under his/her SS number (as they usually are), it does not get reported on your return. If it does need to be reported, it would go on his/her individual return. If that was his/her only income, it does not get reported at all. She does not need to file a tax return.
SS is only taxable & reportable when added to sufficient other income. Social security only becomes taxable, when his income, including 1/2 his social security, reaches $25,000
