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Minor children receiving social security subsidies

Technical topics regarding tax preparation.
#1
chris  
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1129
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Location:
New York
Mom is disabled; kids are very young (2 years old and 5 years old) and have no other income besides $14,500 (each) received from SSA as subsidies due to mom's disability.

The money is deposited directly into accounts in the kids' names. Mom keeps track of how every dollar is spent. For 2018 around $2500 was spent from each kid's account and the rest remained in savings.

Are my facts accurate here?

1. Income is taxable to the kids, but there is no tax liability (nor filing requirement) since it's the kids' only income and below the $25,000 threshold.

2. Since mom and dad still pay for more than 50% of the kids' support expenses, we are safe continuing to claim the kids as dependents.

thanks...
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#2
makbo  
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5540
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23-Apr-2014 3:44pm
Location:
District 13
Sounds right. Note: the amount of support paid by parents doesn't matter, it's whether or not kids pay more than half of their own support. Their income deposited (and left) in a savings account does not count as support.
 


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