If both you and your child are receiving benefits, the taxability of benefits should be calculated separately. The taxation of benefits is based on the income of the person receiving the benefit. So while it is possible for your child's benefit to be taxed, they generally will not receive enough additional income for this to happen. See http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Social-Security-Income/Survivors'-Benefits/Survivors'-Benefits and http://www.irs.gov/pub/irs-pdf/p915.pdf for more details.
Join or Renew With AARP for Just $16 a Year
- Discounts on travel and everyday savings
- Subscription to AARP The Magazine
- An ally on issues that matter most to you
- Free membership for your spouse or partner