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I read that minors who have SSA-1099 need not file a return if it is the only income they receive, but what if the child also receives a non-taxable annuity from DFAS?

Forum|Forum|7 years ago
June 3, 2019
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I am a military surviving spouse, and so I also receive SSA. I understand not to include my childrens' amount on my return, but I was told by previous CPA's that it was complicated because their incomes needed to tie in with mine. I don't know if that is true or not, but they've always filed separate returns for them. This is the first time in 11 years I've done my own taxes, so I'm a bit confused.

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Best answer by IsabellaG

The reason that your accountants said that your minor children's income needs to be tied in with yours is because of what is known as the "Kiddie Tax." If your children who are either under 18, or under 24 and full time students have unearned income of more than $2100, they may be subject to the Kiddie Tax, which means that their income would be taxed at your income tax rate.

It would seem that the children must have received at least some taxable income in the past in order for the accountants to have filed returns for them. Did they receive 1099-Rs for the annuity? Is none of it taxable at all? My research indicates that this would be taxable.

TurboTax will ask you the necessary questions in this situation to determine how to calculate their tax.

IsabellaGAnswer

Employee

The reason that your accountants said that your minor children's income needs to be tied in with yours is because of what is known as the "Kiddie Tax." If your children who are either under 18, or under 24 and full time students have unearned income of more than $2100, they may be subject to the Kiddie Tax, which means that their income would be taxed at your income tax rate.

It would seem that the children must have received at least some taxable income in the past in order for the accountants to have filed returns for them. Did they receive 1099-Rs for the annuity? Is none of it taxable at all? My research indicates that this would be taxable.

TurboTax will ask you the necessary questions in this situation to determine how to calculate their tax.

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M

mkcukaAuthor

I did realize shortly after I posted this question that the annuity they are are receiving is under their social security number and not mine. This would make sense as to why they need to file their own returns. So in short, they did receive 1099-Rs and it is all taxable, you are correct. Thank you for being so helpful!