The benefits you received for your children go on their returns. They do not affect in any manner the taxability of your return. Unless there is any other income that your child receives, there will be no tax on the children's Social Security benefits, and they do not need to file a return. Your benefits go on your return. The question of your taxability depends on whether or not you have other income. Your tax booklet each year has a worksheet to show you how much is taxable. The amount you must include and which is subject to tax can be as high as 85%.

It is important to remember that only your current year benefit belongs in that year's return. If you receive a lump sum benefit, which included more than one year, go straight to #9.

The amount of the benefit you received in the current tax year will be shown in Box 3 of the SSA 1099. If there is an asterisk (*) in that box, that means it included prior year's benefits. The amount you or your preparer uses in determining how much is taxable is in Box 5, unless you see the asterisk in Box 3.

As a general rule of thumb, if you add one half of the amount in Box 5 (or the amount of Social Security benefits attributable to the current year, as explained in the "description of amount of Box 3"), and add all your other taxable pensions, wages, interest, dividends, and municipal bond income, and that amount doesn't exceed $25,000 if you are single or $35,000 if you are married, then there will be no tax on your Social Security benefits. If your total is higher, you will include from 50% to 80% of your excess benefits on your return. You'll have to use the worksheets provided in your tax book.