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Do minors pay taxes if they receive survivor benefits from social security AND death benefits from workers comp?

My daughter is 16 months old and receives about $2800 between Social Security and Workers Comp. Her dad is deceased due to his job. She's also getting back pay of $20k. Am I going to need to file taxes for her next year? 

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6 Replies

Do minors pay taxes if they receive survivor benefits from social security AND death benefits from workers comp?

Yes you will ... the back pay was taxable to the decedent so it will be taxable to the beneficiary ... they should send forms in January to use to file a return for the child. 

Do minors pay taxes if they receive survivor benefits from social security AND death benefits from workers comp?

Child is 16 months old.
If Social Security and Worker's Comp are her only incomes, they are NOT taxable.
Hal_Al
Level 15

Do minors pay taxes if they receive survivor benefits from social security AND death benefits from workers comp?

Worker's comp is not taxable or even reportable on her return.

Social security (SS) only becomes taxable when added to sufficient other income. If she receives a taxable lump sum (back pay), then some of her SS will be taxable in the year the lump sum was received.

Social security payments to children.
 If the Social Security (SS) payments, including SS disability, were under his/her SS number (as they usually are), it does not get reported on your return. If it does need to be reported, it would go on his/her individual return. If that was his/her only income, it does not get reported at all. She does not need to file a tax return.
SS is only taxable & reportable when added to sufficient other income. Social security only  becomes taxable, when his income, including 1/2 his social security, reaches $25,000

Do minors pay taxes if they receive survivor benefits from social security AND death benefits from workers comp?

The lump sum back pay is coming from Workers Comp. She only received a month of back pay from Social Security since I applied shortly after she was born. Currently she's getting $1,016 per month from Social Security and $1800 from Workers Comp. So since Workers Comp is not taxable, does that mean I won't have to pay taxes on Workers Comp back pay? Both SS and Workers Comp would give her around $36,000 per year. So will I have to pay taxes on Social Security next year then?
Hal_Al
Level 15

Do minors pay taxes if they receive survivor benefits from social security AND death benefits from workers comp?

Workers comp, whether monthly or lump sum, is not taxable. So, no, none of her SS will be taxable, since she will have no other taxable income.

Do minors pay taxes if they receive survivor benefits from social security AND death benefits from workers comp?

Ok ... in your original question you said "back pay" which sounded like it came directly from the employer  but it the pay if from workman's comp the it would not be taxable ... check with them to be certain ... ask if any tax reporting form will be issued next January.
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