How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Social Security
Satisfied Customers: 16580
Experience:  Licensed CPA, CMA, CFE, CGMA M.Accy Also Teach Accounting courses at Master's Level
23669918
Type Your Social Security Question Here...
Megan C is online now
A new question is answered every 9 seconds

For the last several months, I have been awarded monthly social

This answer was rated:

For the last several months, I have been awarded monthly social security dependent benefits (i.e., $$ deposited in my account), in addition to receiving a one-time lump backpay amount, for my 9-year-old son. My son's biological mother receives SS for a mental health disorder, and I have been appointed as the "Representative Payee" since she is unable to take care of my son. My son lives with me and I have sole custody

Will I be required to pay taxes on these SS dependent funds that I have received/am receiving/ during the 2013 year?

Megan C :

I realize you have a question about social security. My goal is to provide you with excellent service, and help you better understand your options.

Megan C :

How are you today?

Megan C :

The benefits that are received are received by your son, not you, so you will not pay tax on this.

Megan C :

So long as 1/2 of your son's benefits plus his other income is less than $25,000 there is no tax and no need to file a tax return

Megan C :

Do you have any other questions? Is there anything else I can assist you with today? If not, please rate my response as "excellent" so that I may receive credit for assisting you today.

Customer:

thank you. can you point me to either case law or CFR/Federal register where I can point my accountant to this info? My accountant is an enrolled agent and always needs to see things in black and white

Customer:

thanks. can you point me to CFR/social security info/case law that points to this info regarding the 25k and the tax issues discussed. My accountant is an EA and likes to see things in black and white

Megan C :

Thank you for your follow up. CLICK HERE for a representative payee guide. ON page 14 it notes "paying income tax" and it states that you will get a 1099-SSA for the beneficiary and whoever prepares the beneficiary's tax return would determine if any tax must be paid.

Megan C :

Is there anything else that you need assistance with today? If not, please rate my response as "excellent" so that I may receive credit for assisting you today.

Thanks for allowing me the opportunity to help you. Please let me know if I can be of any further assistance to you in this matter. I really enjoyed working with you – please feel free to request me again when you come back to ask another question. Simply enter "MyVirtualCPA" in the subject of your question Thanks again for being a JustAnswer customer
Megan C and other Social Security Specialists are ready to help you