Benefits on a child's record will not be added to your income for tax purposes. Taxes on a child's record would be based on their own provisional income. If they are not working, normally, there will be no need to file a return because Social Security benefits alone are not enough to meet the taxation threshold. However, if they are working it is possible for benefits to be taxed. It is best to seek a tax advisor's advice for the optimal strategy in your particular situation.