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I have a client whose minor daughter receives SS survivor benefits from a deceased parent. Does anyone know whether or not the SS benefits received by the minor are considered unearned income as it pertains to the kiddie tax? The only reference I can find addresses SS benefits related to disabilities which are not considered unearned income for this purpose. Any insights will be appreciated. Thanks!
Michael B.
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I do not think that I have ever encountered this situation. Having said that, I can never recall reading anywhere that SS benefits received by a minor would have an effect on the kiddie tax. ... I may be wrong but that is just my opinion.
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Yes, if it is 'taxable' it is unearned income subject to the Kiddie Tax.
But it doesn't become 'taxable' unless there is a significant amount of other income on the tax return.
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Thanks very much. Appreciate your thoughts.
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Excellent point about the taxable component of the benefit. In this case, none will be taxable. Thanks very much.
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That would be a "significant amount" of income for a "kid".... I do not think there are that many kids in that situation.
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Their unemployment benefits probably kicked them into that situation.😬
Slava Ukraini!
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Excellent point Iron Man... will this nonsense ever come to an end?
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Not anytime soon.
Slava Ukraini!