Yes, their Social Security income may now be taxable if:
- If combined income is between $32,000 and $44,000, up to 50% of Social Security benefits may be taxable.
- If combined income exceeds $44,000, up to 85% of benefits may be taxable.
Their Combined income is calculated as:
- 1099 C income
- Half of Social Security benefits
As far as filing a tax return, if the amount of the 1099 C and taxable Social Security exceeds $30,750 (Standard Deduction for a Married File Jointly), there is a filing requirement for your grandparents.
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