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Is this taxable income?

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What is the name of your state (only U.S. law)? PA

back in 2009 child passed away but was receiving SSDI benefits. when child passed, child was still due one more SSDI check. date of death 2 weeks before check to be issued. finally in 2010, both parents received a check from Social Security. now do we have to claim this as taxable income?
 


tranquility

Senior Member
It's not income as the payment must be returned. From:

What You Need To Know When You Get Social Security Disability Benefits

If a beneficiary dies

Let us know if a person receiving Social Security benefits dies. Benefits are not payable for the month of death. That means if the person died any time in July, for example, the check received in August (which is payment for July) must be returned. If direct deposit is used, also notify the financial institution of the death as soon as possible so it can return any payments received after death.
 
no that is incorrect. child's benefits were 1 month behind and because childs birthday was near the end of the month that was his pay date. this was already verified by social security that my child was entitled to this becausee it was for the month before child passed away. we never had to return it because we never got it. refer to this link:

Claim For Amounts Due In Case Of A Deceased Beneficiary - Form SSA-1724


so my question again is: since SS sent parents the last check, is that considered taxable income for parents?
 

tranquility

Senior Member
As a tax issue it would be income in respect to a decedent. (IRD) As a reality issue, be sure, as I read it differently. Everything I read has SSDI (not the same as social security benefits) paid after earned. If a person dies in the month it is not paid for that month.
 

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