Adopted Minor Children's Social Security Funds Usage

[Telecorder]

Our two adopted minor grandchildren receive social security under my retirement SS that are direct deposited into their own savings accounts. We transferred funds in 2023 from their savings accounts to our checking to aid in their support. Do we need to report the transferred amount on our 2023 joint 1040 since their SS is not taxable and, if so, how would one report this in Turbo Tax filing?

[VolvoGirl]

Do the SSA-1099 forms come in your ssn or their ssn?   If it has their ssn on it it would only go on their returns.  If all they have is social security they don't have to file a return and nobody reports it.

[Telecorder]

They're 10 & 11 and still in elementary so no work/earned income or 1099's under their SSN.  Sort of thought no reporting would be the case but wondered about tax implications of using their funds for general support.

Thanks

[VolvoGirl]

No it shouldn't matter what you use it for.   You will probably get the Social Security SSA-1099 in January.  See whose ssn is on it.  Are you getting your own Social Security yet?  

[Telecorder]

I retired at full retirement age and am receiving my own SS as is the retired wife but I am still working full time. I went back to 2022 and confirmed that the kids did each receive 1099s from SS. Applying the 50% to benefit amounts, they're well under the $25K limit.

[VolvoGirl]

The 50% rule and limit is only if they get other income.  If they only get SS it is not taxable no matter how much it is and  they don't need to report it or file.