Are social security survivor benefits for children considered taxable income?

Yes, social security benefits paid to a survivor fall under the realm of taxable income. Usually the benefits are not hefty enough to warrant tax all on their own, but they can be, depending on the circumstance under which the children are allowed to collect. Most of the time these children are still dependents so they must be added to the filing guardian's tax return in order to be appropriately accounted for in the IRS system.

The additional dependent deduction usually eliminates any additional taxes that would be owed on the survivor benefits. Some accountants have found legal ways around the taxation of the benefits, though the straight answer is that the money is taxable. Because of the needs of children receiving benefits there are often additional deductions that can help ease the tax burden for those in need.

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