Do I report Social Security representative payee funds on my taxes? Confused about my son's disability benefits

I went through this exact situation with my sister! Only the caregiver benefit that's in YOUR name counts as YOUR income. The check that's in your name FOR your son isn't your income - it belongs to him even though you manage it as his representative payee. His benefits are likely not taxable anyway if that's his only income. Make sure you keep good records of how you spend his money though - the SSA can audit representative payees.

To clarify the tax situation: the payment that comes with your name "FOR" your son is not your income. As a representative payee, you're just managing his funds. Whether HIS benefits are taxable depends on his total income. If his only income is SSDI (Social Security Disability Insurance), it's likely below the taxable threshold. For your caregiver benefits, you'll receive an SSA-1099 form that shows the total benefits paid to YOU. You'll need to include this when filing your taxes, and depending on your other income sources, a portion may be taxable. If your total income (including half of SS benefits + other income) exceeds $25,000 (single filer), then up to 50-85% of your SS benefits might be taxable.

I think ur overthinking this. The SSA sends u a 1099 form that tells u exactly what to report. Just give that to ur tax person and they handle it. My kid has disability 2 and I never had to do anything special.

When I became my mother's representative payee, I was confused too. Here's what you need to know: 1. You'll get an SSA-1099 in YOUR name that includes ALL payments made to you - both your caregiver benefits AND your son's benefits (since you're the payee). 2. BUT - and this is crucial - you're only taxed on YOUR benefits, not your son's. 3. You need to file a "Representative Payee Report" (Form SSA-623) annually showing how you spent your son's money. 4. I recommend setting up a separate bank account for your son's funds to make tracking easier. When filing taxes, you may need to consult with a tax professional the first time to ensure you're only reporting your caregiver benefits as income. The SSA-1099 can be confusing because it shows all payments made to you.

Anyone else notice how impossible it is to get anyone on the phone at SSA to ask these questions? I had a similar issue last year and spent DAYS trying to get through to someone. Kept getting disconnected after waiting for hours. So frustrating!!

My sister is representative payee for her son who has downs syndrome. The money for him doesn't count as her income but she still has to keep really good records. SSA makes her fill out a form every year showing how the money was spent on him only. One time she was confused and they called her in for a review and scared her so make sure you understand everything!!!!

Just want to add something important - make sure you're VERY clear about which funds are yours and which are your son's. My neighbor got in trouble because she was using her daughter's disability money to pay household bills without documenting how it benefited her daughter specifically. The representative payee funds must be used EXCLUSIVELY for your son's needs and benefit.

To address your latest question - yes, using your son's benefits for his food, clothing, portion of utilities and medical expenses is appropriate. You can also use it for his recreation, education, and personal items. Just document everything. As for the Representative Payee Report (Form SSA-623), the SSA will mail this to you annually. You'll report how much of his benefits you saved and how much you spent on different categories. Keep all bank statements and major receipts for at least 2 years in case of an audit. I recommend creating a simple spreadsheet with categories like: - Housing (his portion of rent/mortgage) - Food - Utilities (his portion) - Medical expenses - Clothing - Personal items - Recreation/entertainment - Education - Savings This makes completing the annual form much easier.