What and how much taxes am I suppose to file for my adult disabled daughter

[KAP22]

Morning

My adult daughter is totally disabled but does work part time, about 10 hours a week.  She lives with me FT and she is considered a qualifying child.  

Am I supposed to pay taxes on her money, SSI, SSDI?  Also We haven't filed taxes for her as she never really made much money and the last three years she did not work because of covid.  This job she does make more so I will need to file for her.  What is considered half of her support to still be considered my dependent on my taxes?  Her money from SSI and SSDI? Thanks, this is all so confusing.  

[xmasbaby0]

You NEVER enter your daughter's income on your own tax return.   If your daughter has any taxable income with tax withheld, she can file her own tax return to seek a refund of the amounts from boxes 2 or 17 of her own W-2.   Since she is your dependent, she must say on her own tax return that she can be claimed as someone else's dependent.    

SSI is not taxable and is never entered on any tax return.  Social Security is only taxable if the person has enough other income to make it taxable.   You say she works only a few hours per week so it is highly unlikely that her SS would become taxable.    If no tax is being withheld from her W-2 job, then she will not even need to file a tax return.

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

Who has to file?

http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

https://ttlc.intuit.com/questions/3113432-who-can-i-claim-as-my-dependent  

• What does "financially support another person" mean?

[NCperson]

@KAP22 more specifically, if she earns less than $13,850 (2023) she is not required to file a federal tax return.  

if there are withholdings, she would need to file to get them refunded, but it is not required. 

since she is considered 'totally disabled' and therefore a Qualifying Child, there is no income test (meaning she doesn't lose that status of Qualifying Child if her income was 'too high').

[KAP22]

NCperson.  Oh wow I did know that. Thanks much. 

[KAP22]

Great info.  But what about SSDI?   The daughter will probably make somewhere around 3000 in 2023.  

[VolvoGirl]

If her wages are low the SSDI will not be taxable.  But if she need to file a return like to get back any federal withholding in W2 box 2 she will have to enter the SSDI  SSA-1099.

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

[rjs]

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@KAP22 wrote:

But what about SSDI?

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SSDI is the same as Social Security.

[xmasbaby0]

Again.....Social Security Disability is not taxable unless half your daughter's SS + her other taxable income from the part-time job exceed $25,000 for the tax year.   

She only needs to file a tax return to seek any tax withheld from her paychecks.   If her W-2 has any amounts in box 2 or box 17 she can file a tax return to seek a refund.   Her return must say she can be claimed as someone else's dependent.    She will not be refunded for amounts withheld for Social Security or Medicare  (boxes 4 or 6) , but she can get a refund for amounts withheld for federal or state income tax.

[xmasbaby0]

I think you are confused (as many people are) regarding SSI and Social Security benefits.   

SSI means Supplemental Security Income.   It is NOT taxable and is never entered on a tax return.    No tax document is issued to your daughter for the SSI.

Social Security benefits and Social Security Disability   (SSDI)   benefits are treated exactly the same for tax purposes.   The rules for tax on Social Security and Social Security Disability Income are the same.  She will receive a SSA1099 from Social Security in late January for the Social Security Disability benefits she gets monthly.    IF she files a tax return, she will enter the SSA1099 on her tax return; she will also enter her W-2 wages.

Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.

WHAT IS THE DIFFERENCE BETWEEN SOCIAL SECURITY BENEFITS AND SSI?

https://www.ssa.gov/ssi/text-over-ussi.htm