Survivors benefit taxes question (US)

[rockyhill]

I am Thai citizen, i got survivor benefits for my 2 children, my first money just arrived after over year my husband death, do i have to pay taxes back for year 2016,and should i do volunteer withholding request, i have green card and ssn, but i left US over 5 years now

 

Thanks for any kindness answer

 

 

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[tonray]

Is this a private pension benefit or government (Social Security) ?

[ballbreaker]

First let me say in the eyes of the IRS this income is the child's and if taxes are due the return must be filed with the name of the child even if payment was made in the name of parent or guardian.  In your case it would require two returns if returns are due, one for each child.  If child has no other income then no tax return is required.

 

The child's income is not included on any parent or guardian tax return.

 

Social Security survivor benefits for children are considered taxable income only if half of the annual survivor's benefits plus the child's other income exceeds the base amount set by the IRS ($25,000), then a portion of the benefit is taxable.  Other income would be from such things as interest, dividends or from working.  Normally children do not have other income.

 

Example: If one child received $18,000 in benefits during one year take half (18000/2) =  9000  then subtract from  (25000-9000) = 16,000 

In example it would require other income of $16,000 before he would owe taxes but it would be necessary to file a return even if less than $16,000 other income.

 

 

Edited March 27, 2017 by ballbreaker

[rockyhill]

Is this a private pension benefit or government (Social Security) ?

Social security, survivor benefit


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[rockyhill]

First let me say in the eyes of the IRS this income is the child's and if taxes are due the return must be filed with the name of the child even if payment was made in the name of parent or guardian.  In your case it would require two returns if returns are due, one for each child.  If child has no other income then no tax return is required.
 
The child's income is not included on any parent or guardian tax return.
 
Social Security survivor benefits for children are considered taxable income only if half of the annual survivor's benefits plus the child's other income exceeds the base amount set by the IRS ($25,000), then a portion of the benefit is taxable.  Other income would be from such things as interest, dividends or from working.  Normally children do not have other income.
 
Example: If one child received $18,000 in benefits during one year take half (18000/2) =  9000  then subtract from  (25000-9000) = 16,000 
In example it would require other income of $16,000 before he would owe taxes but it would be necessary to file a return even if less than $16,000 other income.
 
 

Thanks you , I really got confused about this as if this money transfer to bank account that i am representative payees from 2 kids my totally income will be exceeds 25000$ , I would like to do it right, before my husband pass away he done all taxes,


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[ballbreaker]

Social security, survivor benefit


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Thanks you , I really got confused about this as if this money transfer to bank account that i am representative payees from 2 kids my totally income will be exceeds 25000$ , I would like to do it right, before my husband pass away he done all taxes,


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This is not your income it is considered children's income. The $25,000 amount is for one child. You have 2 children so you could receive $50,000 and not need to file tax return provided each child received same benefit. If one child received $20,000 and other child received $30,000 the child that received $30k might need to file tax return.

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[rockyhill]

This is not your income it is considered children's income. The $25,000 amount is for one child. You have 2 children so you could receive $50,000 and not need to file tax return provided each child received same benefit. If one child received $20,000 and other child received $30,000 the child that received $30k might need to file tax return.

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Very clear, thanks you so much


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