MY DISABLED DAUGHTER RECEIVED SSA-1099 FOR $5700. CAN I STILL CLAIM HER AS A DEPENDENT?

Q.  CAN I STILL CLAIM HER AS A DEPENDENT?

A. yes.

Q. IF SO, DO I HAVE TO INCLUDE THAT AS INCOME?

A. No. 

Social security payments to children.

 If the Social Security (SS) payments, including SS disability, were under his/her SS number (as they usually are), it does not get reported on your return. If it does need to be reported, it would go on his/her individual return. If that was his/her only income, it does not get reported at all. She does not need to file a tax return. 

SS is only taxable & reportable when added to sufficient other income. Social security only  becomes taxable, when his income, including 1/2 his social security, reaches $25,000

You may still claim him/her, as a dependent, as long as he is not providing more than 1/2 his own support (including the social security being spent on him). Any part of his SS $ put into savings does not count as support.

Note that the requirement is not that you provide more than 1/2 his support (as it is with non child dependents, but only that he didn't provide 1/2.