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Level 2
June 6, 2019
Question

Are TANF benefits taxable?

  • June 6, 2019
  • 3 replies
  • 0 views

From what I read TANF benefits are not taxable unless for "compensation for services".  What does this mean, its taxable if its for compensation of services/  Is it taxable or not?. Also if its not taxable, will I receive a 1099 in the mail?.

    3 replies

    dsblitz1Author
    Level 2
    June 6, 2019
    It still says TANF benefits received for "compensation for services" are taxable and should be included in your taxes.  What does this term mean and how do i know if it affects me??  Will I receive any 1099 if I was on welfare?
    Critter
    Level 15
    June 6, 2019
    "compensation for services"  mean you worked for the money ... ask the payer if this applies to you.
    Critter
    Level 15
    June 6, 2019

    TANF and Income Taxes. The IRS does not tax the funds people receive from theTANF program. According to IRS Publication 525, "governmental benefit payments from a public welfare fund based upon need" are not included in your taxable income, so you should not claim such payments on your taxes.

    Alumni - Champ
    June 6, 2019