Will my disabled son pay taxes on Social Security benefits from my record once he exceeds 20k annually?

Good question about your son's potential tax situation. Social Security benefits MAY be taxable depending on his "combined income" - not just the SS benefit amount. The formula is: Combined Income = Adjusted Gross Income + Nontaxable Interest + 1/2 of Social Security benefits For individuals, taxation starts when combined income exceeds $25,000 (50% taxable) and increases at $34,000 (up to 85% taxable). If your son has no other income besides Social Security, he likely won't pay federal taxes on his benefits regardless of amount. The key is if half his benefits plus any other income exceeds those thresholds. Hope that helps!

my daughter is in similar situation got disability payments and lives in group homw. shes been getting over 22k for 3 yrs and never paid taxes on it. her case manager said its not taxed unless she has other income too.

Just to clarify something important - it sounds like your son transitioned from SSI (Supplemental Security Income) to DAC benefits (Disabled Adult Child, sometimes called CDB or Childhood Disability Benefits). This happens when a parent retires, becomes disabled, or dies, and the disabled adult child can often receive higher benefits on the parent's record. As others have mentioned, if Social Security is his ONLY income, he won't pay federal taxes on it regardless of the amount. The IRS specifically states that if your only income is Social Security benefits, those benefits aren't taxable. One concern: make sure his benefit amount doesn't affect his Medicaid eligibility if he receives it. Sometimes when people transition from SSI to DAC benefits, they need special accommodations to maintain Medicaid.

My brother gets SSDI and I help with his taxes. I just want to point out that even though benefits might not be taxable, sometimes it's still good to FILE taxes. Some states have property tax or rent rebates for disabled people that require filing a tax return to get. Just something to consider!

I work with disabled adults and deal with this CONSTANTLY. SSA is confusing! Just one more thing to mention - sometimes group homes will increase rates based on income increases. If you're concerned about his ability to pay in the future, you might want to look into an ABLE account where you could set aside some money to help with expenses without affecting his benefits. Also, PLEASE make sure you have a good special needs trust set up for any inheritance planning. I can't tell you how many families accidentally mess up benefits by leaving money directly to their disabled children.

I had EXACTLY the same worry about my daughter when COLA increases pushed her over $20k. I spent HOURS trying to get through to SSA to get a clear answer. After being on hold forever and getting disconnected repeatedly, I finally found Claimyr.com which got me connected to an actual SSA representative in 20 minutes. The rep confirmed what others have said here - if Social Security is her only income, it's not taxable regardless of the amount. You can see how their service works in this video: https://youtu.be/Z-BRbJw3puU Saved me days of stress and phone frustration!

WATCH OUT!!! My cousin was in a similar situation and ended up with a SURPRISE tax bill!!! But it turned out he had a small pension from a job he had years ago - only like $250/month. That pushed him over the limit and suddenly half his SS was taxable!! Make ABSOLUTELY SURE your son has ZERO other income!!!

I just want to say it's wonderful you're planning ahead like this. So many families don't think about these things until there's a crisis. Your son is fortunate to have you looking out for him!