AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 2/7/2008 Subject: childs disability award
Question Hello. I was just recently approved for disabilty with social security. My son as a dependent will get an award of 1/2 that amount every month. Does this classifiy as income to him that would require me to 1. pay taxes on it next year or 2. file a income tax return for him ? thanks
Answer The income is reported on the return of the person who has the legal right to receive the benefits. The social security benefits belonging to your dependent child must be added to your child's other income to see whether any of those benefits are taxable to the child. Whether the benefits are taxable will depend on the amount of benefits and amount of other income, including interest or dividends. But basically, if he has no other income, it will not be taxable. If it is not taxable - he need not file.
