social security tax question

[mom-from-missouri]

Last year, the CPA (we use one every few years to make sure I am doing it correctly) told us the social security my 3 daughters get (as of last fall when their father died) would not be taxable, as they were minors and not earing that much ($582 a month per child, and checks are made out to me on their behalf)

This year, I did the taxes, and people are telling me that I have to claim it as income and it is taxable.

If that is the case, wouldn't I have gotten forms from SS???

what I did get says nothing was with held, and it is under their ssn, not mine. They only got it for 3 months last year. The form says it "might be taxable" IF they had another source of income. They had no other income, but did have my support.

When I fill out the notice 703 I come up that they owe nothing.

Am I defining INCOME incorrectly??

Of course, no cpa's are taking calls tonight....hate to go into one tomorrow and pay a hundred bucks...

[MonkeyMama]

If the income is less than $5800 per child (2011), then they do not have to file anything.

Unfortunately, I have a few clients who have no income but social security, and certainly do not owe any taxes on social security, but still have to file. Which looks like what your children will be stuck with in 2012? (A full 12 months of SS payments?). I know - it is a pain! For 2012, they will each have to file, though will owe no tax. {You do not have to report the income on *your* tax return}.

Better to listen to the CPA you paid than "people."

[MonkeyMama]

Actually, I think I mispoke. If they literally had no other income, then I don't think they have to file in 2012 either. {According to IRS website}.

[mom-from-missouri]

If the income is less than $5800 per child (2011), then they do not have to file anything.

Unfortunately, I have a few clients who have no income but social security, and certainly do not owe any taxes on social security, but still have to file. Which looks like what your children will be stuck with in 2012? (A full 12 months of SS payments?). I know - it is a pain! For 2012, they will each have to file, though will owe no tax. {You do not have to report the income on *your* tax return}.

Better to listen to the CPA you paid than "people."

thanks mm. My gut was telling me to listen to him, but the back of my head was wondering if there was a change in a law somewhere. Panic mode is going away and blood pressure coming back down. Thanks!

[jpg7n16]

Actually, I think I mispoke. If they literally had no other income, then I don't think they have to file in 2012 either. {According to IRS website}.

Just for your own peace of mind. Here's that website:

From: Are Your Social Security Benefits Taxable?

Generally, if Social Security benefits were your only income for 2010, your benefits are not taxable and you probably do not need to file a federal income tax return.

[mom-from-missouri]

Just for your own peace of mind. Here's that website:

I saw that page, but wasn't sure if it applied to minors (which they are). The person who was giving me my (wrong) information told me it counted as MY income, rather than theirs.