If your children receive Social Security survivors/disability benefits,
that is income to them, not to you. You do not enter it on your tax
return. Look at Box 2 of the SSA-1099 and you should see the child’s
SSN. If that is the only income a child has, then the child does not have to
file or report it either. If the child has enough other income to be
required to file, then the child reports the SS on the child's return.
It may not be necessary for the dependent to file a separate return, To determine if your child is required to file a tax return, you can refer to the IRS Link provided (https://www.irs.gov/publications/p929/ar02.html)
If your child’s unearned income only consists of interest and dividends, then
you can elect to include it on your own return and combine it with your
income. Do this by completing IRS Form 8814 and attaching it to your
personal tax return (TurboTax will do this for you). Use IRS publication 929 as well to determine if you qualify. Search for 8814 in the Document.
