A friend of mine has two daugthers (10 yr & 5 yr). Their father passed away in Dec 2005. They received their father's social security $10,852 each. Their mother doesn't work. Does the mother need to file a tax return or pay any taxes on the money her daughters received?
2007-03-12 17:17:02 · 3 answers · asked by notarypublic2004 1 in Business & Finance ➔ Taxes ➔ United States
No. If this is the child's only income, there is no tax due and no return needs to be filed.
2007-03-12 17:26:41 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
If the children do not have any other income than no tax return is due. Make certain that the mother checks with the father's employee to make certain that he has any life insurance or retirements plans through his work and for who the beneficiaries are.
Life Insurance is almost always tax free. Retirement benefits given to a spouse in tax differed until cashed in. Retirement benefits received by anyone else is taxable when received.
The other important fact is because the mom does not currently work, any benefits that she qualifies for through the state may also be limited because Social Security for the children are considered household income. She will need to check with her case worker for details.
If she has not applied for any of the benefits please talk her into doing so. While her husband worked he paid taxes that fund the programs and it is time for her to get some of it back.
2007-03-13 01:59:05 · answer #2 · answered by jks_mi 3 · 0⤊ 2⤋
a million. you would be able to desire to report the return. do no longer circumvent this. 2. verify your submitting status. you are going to be based. If all people can declare you based, then you certainly don't get your very own exemption. 3. commonly this could desire to be self employment earnings, that's undertaking to SE taxes at 15.3%. (yet may well be ninasgramma has perfect information approximately medical learn participation earnings. if so, despite in case you do no longer could desire to pay SE taxes and you haven't any longer have been given any federal tax or state tax due, you would be able to desire to report the return to exhibit your place.) 4. you will pay federal tax in the experience that your earnings is greater effective than $5,350 (for unmarried based) or $8,750 (unmarried nondependent). 5. Then there may well be State tax based upon your state.
2016-10-02 00:59:49 · answer #3 · answered by ? 4 · 0⤊ 0⤋