Submitted By: Kevin
Answered: March 14, 2012 7:00 am

I receive Social Security benefits for my minor children on account of the death of the other parent. Are these benefits taxable?

The benefits belong to the children, even though you receive them on their account. Thus, whether they are taxable to them depends on their income, and they are subject to the same tax rules that apply to retirees receiving Social Security benefits. Because of the income limits that apply, likely they are tax free to your children.

Tax Glossary

Tenants in common

Two or more persons who have undivided ownership rights in property. Upon death of a tenant, his or her share passes to his or her estate, rather than to the surviving tenants.

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