topic Penalty for not filing minor child disability benefits in After you file

Penalty for not filing minor child disability benefits

AlfaMom — Wed, 04 Nov 2020 12:40:11 GMT

My husband receives disability benefits and as a result our minor children also receive the benefits as well. They each receive about $3600 a year. I thought they weren't required to file taxes if they earned less than $11k per year, but I just realized that because it's unearned income they are required to file taxes for income over $1050. This have been going on for over 3 years. Any idea what the penalty will be for not including their income on our taxes or for filing their taxes?

Re: Penalty for not filing minor child disability benefits

xmasbaby0 — Wed, 04 Nov 2020 13:01:27 GMT

Your children do not have to file tax returns for Social Security they are receiving unless someday they are filing tax returns with OTHER income they also received. And their Social Security income does NOT go on your own tax return.

I think you may be confused about "unearned" income such as income from investments, which could be subject to the "kiddie tax." Social Security is not subject to the "kiddie tax."

https://ttlc.intuit.com/community/income/help/what-is-the-kiddie-tax/00/25913

Someday if your children have other income from some other source such as a job, then when they file a tax return, the Social Security SSA1099 must be included on their own tax returns. You will never put it on your own return.

Re: Penalty for not filing minor child disability benefits

xmasbaby0 — Wed, 04 Nov 2020 13:31:49 GMT

I should add--just in case---your spouse's SSA1099 must be included on your own joint tax return. But you do not put your children's income on your joint return.

Re: Penalty for not filing minor child disability benefits

AlfaMom — Wed, 04 Nov 2020 16:24:42 GMT

Thank you for clearing that up for me. And yes, I always include my husbands SSD income on our returns.