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  There are several types of Social Security benefits. Social Security retirement is paid to retirees. Social Security disability is paid to disabled adults who paid into the systems and to their eligible minor dependents. Social Security survivor benefits are payable to children with a deceased parent who paid into the system. Disabled children usually get Social Security Income (SSI) benefits that are not taxable, but they sometimes also receive benefits based on their parents' contributions.
  
  

Are Social Security benefits taxable?

• If the family's base income exceeds the income limit for the tax year, their Social Security benefits are taxable. Income includes 50 percent of Social Security benefits, all taxable income, tax exempt interests and dividends.
  
  

Are children's Social Security benefits taxable?

• Benefits for children are paid to a responsible payee, usually the child's caretaker. The adult that receives the benefits must determine if the benefits are taxable based on current tax laws and total income of the family.
  
  

Are Social Security benefits received this year for a previous year taxable?

• All income received from Social Security must be claimed in the year it is received by the recipient. However, people can elect to determine the taxable part of benefits received for a previous year separately. There are worksheets in IRS Publication 915.
  
  

How can a person determine the amount of taxable benefits?

• To determine the amount of taxable benefits, add taxable income and half of the Social Security benefits received. Compare the total to the base income chart. If the total is larger than the base income, then 50 percent of the benefits are taxable. If it is lower, none of the benefits are taxable. The instruction booklet for the IRS form used has a simple worksheet to help determine taxable amounts.
  
  

How are Social Security benefits claimed on the tax form?

• The 1040 tax form has a line specifically for Social Security income. List the total of benefits and the amount that is taxable on the appropriate lines. People who claim Social Security income cannot use form 1040ez.