shedges[at]bloomington.com wrote:

- quote -


SSA disability benefits are treated no differently than SSA
benefits. They are taxable (up to 85% of the benefit) to
the extent that the recipients other gross income exceeds
certain levels.

--
Alan
http://taxtopics.net

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"LLTS" <wedeki...[at]bellsouth.net> wrote:

- quote -

It (a) belongs on the father's return and (b) is probably
not taxable unless the father had significant other income
in 2006.

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Normally, SS Disability Benefits are excluded from the gross
income of the recipient. When a taxpayer dies, his tax year
ends on the date of death, so it would not go on his return,
even if paid before his death. The "income in respect of a
decedent" treatment allows the income recipient (daughter)
to treat it on her taxes the same way it would have been
treated on the decedent's taxes-wholly excluded from income.
Therefore, it is totally tax free, totally excluded, and
not even shown anywhere on her 2006 return.

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"LLTS" <wedeki...[at]bellsouth.net> wrote:

- quote -

What is in box 5? This is Dad's income, not daughter's
income. Dad may not have to file a return.

Missy Doyle

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A man stops working in 2005. Files for Social Security
disability. He dies in 2006, before his claim is paid. The
lump sum benefits are paid to his daughter. The SSA 1099
shows father's name in Box 1 and Box 2 (ssn) is blank.

Does this income properly belong on the father's 2006 return
or must it be claimed by the daughter?

Thanks for your thoughts

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