Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
My son will soon be getting SSI payments. Does he have to pay income tax on the money?
He is 18 years old and has Down Syndrome. As we understand it, he will receive money and pay some of it to us (his parents) for room and board. Do we pay income tax on that money, too? Any information anyone has on SSI/Disability payments would be gratefully accepted!
We checked into getting SSI when he was born, but our income at that time was too high. We pretty much forgot about it for the next 18 years, and then found out he could get SSI at age 18, not based on our income.
8 Answers
- Anonymous1 decade agoFavorite Answer
The social security benefits are taxable only if he has other income. If his other income plus one-half of his social security benefits exceed $25,000 portions of the benefits are taxable. If he has no or very limited income in addition to the social security then the benefits are not taxable.
Sharing the household expenses does not create income for you or a tax liability.
Source(s): practicing accountant - 6 years ago
SSI isn't based upon Social Security taxes, even though Social Security manages it. It gets it's funds from general revenue taxes. SSI is supplemental security income, this is different from the social security benefits you would receive if you were disabled from a job, or if you retired, etc.. IF the beneficiary was working and receiving SSI, then the only taxes they would pay is on their income from their job. My daughter just started receiving SSI, we also made too much money for her to qualify before she was 18. I've asked every question imaginable with my social security representative when I was there. I learned that SSI payments and usage is heavily monitored more now than it used to be. Keep those receipts and good records should you be audited.
- 1 decade ago
Your child was suppose to have SSI since the doctor told you he had down syndrome...my Nice's' daughter get SSI since she was a little girl...If you are charging your child room and board probable you have to pay taxes.
- Diana CLv 41 decade ago
My son has been on SSI since he was 3. We've never had to pay taxes on any of the monies he's received.
- How do you think about the answers? You can sign in to vote the answer.
- 1 decade ago
SSI NEVER taxable no matter what other income is.
Call IRS at 1-800-829-1040 7AM to 10PM to ask it.
Source(s): 20 years w/Uncle - Anonymous1 decade ago
Check with a company like H& R Block! They will know! Good Luck! I will say a prayer for you both! bye
- Anonymous1 decade ago
I don't believe it has to be over 25,000,who the payee if you are you won't pay taxes but if he is you will