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Only Social Security survivors' and disability benefits received by minors can be taxable. If your child receives Supplemental Security Income, the full amount of the benefits is exempt from tax, and neither you nor your child must include them on your income tax return.
Some states tax Social Security and SSI disability benefits while others don't. Social Security payments, whether from Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), may be taxable in your state. The majority of states, however, exempt disability benefits from taxation.