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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.
Disability Benefits - Taxability. Income you receive from disability income insurance may or may not be taxable. If any portion is taxable, you must report that portion on your IRS Form 1040, FTB Form 540 or other State income tax form.