Husband passed away. Wife and Child get SS survivor benefits. Does child file separately or does Wife file together as Head of Household.

[arievanderdoes]

Child has Health insurance full year  but Wife only first three months, her penalty is prorated right?

[DJS · Accepted solution]

If the child needs to file a tax return (see below) then only the child can file. The income is not reported by the parent.

First, survivors benefits are paid out on a tax-free basis. However, if children have work earnings or other taxable income, their total income could cause their benefits to become taxable. Survivors payments are taxed based on the total combined income of the children who receive them. This can include work wages, self-employment earnings, and dividends from stocks or life insurance policies. If their total incomes exceed $25,000, up to 50 percent of their survivors benefits are taxed at normal income tax rates. Up to 85 percent of their survivors benefits are taxed if their combined incomes top $34,000. If a minor child receives only Social Security survivors' or disability benefits and other unearned income, he must file a return if the total of his unearned income exceeds $950. If the child is blind, the Internal Revenue Service won't require him to file a return unless the total exceeds $2,400. If the child also receives earned income, such as wages, he may have a higher filing limit. The IRS won't treat your child's Social Security benefits as your income. In fact, you cannot include them in your income even if you wish to. The only type of minor income you can elect to include with your own is investment or dividend income. However, if your child is a minor who must file a return because of Social Security benefits, you are responsible for signing and filing the return if the child is too young to do so himself.

Regarding the health insurance, please see the following: https://www.healthcare.gov/fees/fee-for-not-being-covered/

• If you have coverage for part of the year, the fee is 1/12 of the annual amount for each month you (or your tax dependents) don't have coverage. If you're uncovered only 1 or 2 months, you don't have to pay the fee at all. Learn about the "short gap" exemption.