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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.
In fact, yes â Social security disability benefits are taxable. However, most beneficiaries donât pay taxes on SSDI because they have very little (if any) additional income. Approximately one-fourth of SSDI recipients owed federal income taxes in 2015, usually because of their spouse or other household earnings.