I receive Social Security benefits on behalf of my minor child because of the death of his father. Are these benefits taxable?

I receive Social Security benefits on behalf of my minor child because of the death of his father. Are these benefits taxable?

It depends. Social Security benefits may be completely tax free or partially included in income. Whether benefits are included in income at 50% or 85% depends on the recipient's income, including tax-free interest and the benefits themselves. In your situation, it's your son's income (not yours) that will determine taxability of the benefits — he's the true recipient.

As long as his "provisional income" does not exceed $25,000, none of the benefits are included in income. Provisional income essentially is total income shown on the return, increased by one-half of Social Security benefits and tax-free interest, and reduced by adjustments to gross income (e.g., deductible IRA contributions) other than student loan interest.