Dick Adams wrote:
- quote -

manner they would be taxable to an adult. Half the benefit plus
his other income including tax-exempt interest would have to
exceed $25K before any amount of his SSD would be taxed.

You state that the benefits are going into a college fund but you
didn't say whether this "fund" is a tax deferral account (QTP
and/or CESA) or just an investment account that is going to be
used for his higher education. The QTP & CESA grow tax-free and
distributions are tax-free if used for higher education qualifed
expenses.

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My youngest child, Joshua the Mercenary, gets SSD funds
and they get put away into a college fund. It never
occurred to me to ask or look up, but are these funds
tax free to him? Now and later?

Dick

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >