I am 62 and have two adopted daughters I I collect my retirement for all of us I also good adoption subsidies does this need to be reported? Will it affect our benefits?

[justmenrose]

I receive my retirement at 62 I have two adopted daughters that I get benefits for I also receive an Adoption Subsidy does this need to be claimed on my taxes and it will it affect our benefits for Social Security

[xmasbaby0]

What retirement benefits are you receiving?  Social Security or something else?  Or SS and some other pension, etc.?

[Critter]

Ask the "adoption subsidy" payer if that is taxable and if  you will be getting any kind of tax reporting form in January.  Once you know the answer to that question your other question can be answered.

[VolvoGirl]

FYI - if your daughters get any SS in their own name and ssn you do not report it on your return.  It would only go on their return if they have other income to report.

[justmenrose]

I am receiving my social security retirement for me and the girls but I was told because I get Adoption Subsidy from the state that it would affect the girls amount of Social Security not mine is this so

[TaxGuyBill · Accepted solution]

If you are receiving the Adoption Subsidy from a government agency, it is almost positively not taxable.

As such, it will not affect how your Social Security (or other retirement income) is taxed.

Only 'earned' income (from a job or self employment) potentially affect how much you receive for your early-retirement Social Security, so the Adoption Subsidy will not affect that either.

[justmenrose]

I had heard that because the subsidy money is basically the girls. Because they get Social Security that it has to be claimed as income on their part not mine is this true

[TaxGuyBill]

As I said before, if the Adoption Subsidy is from a government agency, it is not taxable and does NOT affect anything on the tax return, either your tax return or the girls.

If the girls' income is only the Social Security (and the benefit from the non-taxable Adoption Subsidy), they are NOT required to file a tax return.

As for whether or not receiving the Adoption Subsidy will affect the amount of Social Security that the girls receive, it is very unlikely it will affect it.  However, that is a question that you would need to ask the Social Security Administration.