$11,000 that was given to me by the govt bc of money that was owed to my father for disability, is it taxable?

Question

The money was given as a lump sum to me from the govt. because my father had been trying to get disability for years. Now, he is on disability, so the govt. had given a lump sum of back track payments from the time he was trying to qualify for disability until the time he finally got disability. I was given a portion from the govt. from the time he was trying to get disability until I turned 18. I just need to know if it is taxable income or not.

Answer 1

As your fathers dependant at the time of his disability you were eligilble for SSI payments.. SSI is not taxable to you.

Supplemental security income (SSI) payments. Social security benefits do not include SSI payments, which are not taxable. Do not include these payments in your income.

Now that your father is collecting SSD, those payments may be taxable to him based on whether he had any other income
see publication 915 to determine if any of your fathers SSD is taxable
http://www.irs.gov/publications/p915/index.html

Answer 2

If your father is still alive and the money will go to him, maybe it is not taxable. If not, it is a matter of inheritance but in that case why should the government give that money to you in the first instance as it doesn't seem to benefit the real beneficiary who may be non-existent!