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SSA-1099 workers comp offset

Gansevoort, NY |

My 3 children get a $8 check each monthly from there father being disabled. We are divorced he pays child support. In the form it says I received 3500 for two of them and about 1500 or the other in worker comp offset. But I didn't and with my income and my husbands income we avg about 35000 to 40000 a year. Do I have to claim this as income when I didn't receive it. It would jump our income up 9000 at least. We have never received any money from workers comp. I always depend on my taxes to help through out the year now I'm worried I won't get as much back. If you could help me understand that would be great.

As per my tax guy. You can't claim your child's SSI benefits on your taxes, simply because it's not your income. Even if your child is very young, the government has no age limits for tax and income liability. If your child is receiving SSI benefits, the government counts that as his income, not yours. You can't claim it as income, and you aren't responsible for paying any taxes on it.

Attorney Answers 3


  1. You have a few issues going on here. The best place for you to go is to speak to a tax specialist (accountant or tax service). Normally, Social Security Disability benefits are taxed a certain way and workers compensation is not taxed. However, if Social Security lowers its payments to you because of workers compensation, even though Social Security pays you less, they tax you on the total amount of Social Security - its almost a hidden tax on workers compensation for people who can least afford it. I hope this begins to help you out and I wish you the best of luck.

    EVERY case is different. The answers provided here are general and not related to the specifc facts of your case. I am not your attorney and if necessary you should seek legal counsel.


  2. My colleague is correct. Talk to a tax preparer and see what you need to do. It may be as simple as swearing out an affidavit, or requesting a corrected 1099 from SSA (but don't hold your breath for that to be correct either), or it may involve writing to your ex-husband's Social Security attorney or workers' comp attorney to get a letter about what is going on and filing that with your tax returns.

    If the checks are direct deposited, that leaves a nice paper trail for what you are actually receiving. If you get checks, start keeping a copy of all checks. And, you can ask you local SS office to send you a letter verifying how much you actually got for the kids (as opposed to what they think you should get if your ex-husband was not getting workers' compensation benefits.

    Any lawyer who handles SS cases has LOTS of stories about SSA's incorrect 1099 forms. They almost always report the gross amount of SS benefits you are supposed to receive, not what you actually receive, and they rarely calculate either workers' compensation offset or attorney fee issues correctly. I guess the good news is that the IRS should know that.........

    Hope that offers some help. Meet with a tax preparer sooner rather than later. Good luck to you.

    The exact answers to questions like this require more information than presented. The answer(s) provided should be considered general information. The information provided by this is general advice, and is not legal advice. Viewing this information is not intended to create, and does not constitute, an attorney-client relationship. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. You should not take any action that might affect your claim without first seeking the professional opinion of an attorney. You should consult an attorney who can can ask all the appropriate questions and give legal advice based on the exact facts of your situation. The general information provided here does not create an attorney-client relationship.


  3. It sounds like your Tax Preparer gave you advice on your discrepancy. Following up with the SSA for clarification/correction of your 1099 is also a good idea.

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