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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.
by FreeAdvice staff. In some situations disability income may be subject to income tax. Whether or not disability income is taxed will depend on who is paying for the disability insurance premiums and how much income you are receiving from your disability benefits in combination with other sources.y FreeAdvice staff. In some situations disability income may be subject to income tax. Whether or not disability income is taxed will depend on who is paying for the disability insurance premiums and how much income you are receiving from your disability benefits in combination with other sources.