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Level 2
April 11, 2023
Solved

Please HELP!!!

  • April 11, 2023
  • 1 reply
  • 5 views

I have 2 Grandchildren and I need to know how do I handle unearned income they receive from their deceased Mother.  They each receive  $5,341.00 ($2040.00 state retirement pension and $3,240.00 SSA).  I am getting conflicting advice....yes you have to file a tax form for each, no you don't have to file a form on them or  you can file their unearned income on their Dads tax form.  Please can some advise me how I need to report their income.

    Best answer by KrisD15

    I am down to the wire on this....please do I include their SS income since it is not taxable to determine their MAGI.  This is all so confusing.  Thanks so much for everyone's help...I am learning as I go.


    Taxes are due April 18th, 2023. 

     

    Yes, add back the (non-taxable) social security to determine MAGI. 

     

    More on MAGI 

    1 reply

    Level 12
    April 11, 2023

    Yes, they will need to file a tax return.  According to the IRS, "You must file a return if any of the following apply:

     

    1. Your unearned income was more than $1,150.
    2. Your earned income was more than $12,950.

    TurboTax can help you file the return for them.  You will create an account and for each grandchild.  

     

    For more information, see the link below:

     

    Filing Requirements

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    Level 2
    April 11, 2023

    Thank You so much....