The father is now receiving SSI. So, his 2 daughters are now receiving Social Security funds too. Their mother has been made the Representative Payee for both girls. Each girl will receiving $543 per month.
1) How do you determine how much rent/food do you charge each girl?
2) As for clothing that is easy.
3) I think both girls receive Mi-Child
4) You are allowed so much for miscellaneous stuff.
5) Funds leftover are allowed to be put into a savings account under each girl's name.
Will any of these funds be considered taxable income to the Representative or an individual child?
Can the representative use a 529 to set aside any extra funds.
Thank you for any assistance.
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Unused funds can be put in 529 Plan or savings.
You don't charge the kids for their food or housing. However, if there are 4 people in the house it would be reasonable to say that 1/4 of the cost of the groceries is spent on each child. And 1/4 of the rent, utilities, mortgage payment for each.
Bottom line, Rep needs to show the money was spent on or for the kids.
If the kids have other income, their SS benefits could be up to 85% taxable just like they are for anyone else.
I would think the SSA website has guidance on this.
Unused funds can be put in 529 Plan or savings.
You don't charge the kids for their food or housing. However, if there are 4 people in the house it would be reasonable to say that 1/4 of the cost of the groceries is spent on each child. And 1/4 of the rent, utilities, mortgage payment for each.
Bottom line, Rep needs to show the money was spent on or for the kids.
If the kids have other income, their SS benefits could be up to 85% taxable just like they are for anyone else.
I would think the SSA website has guidance on this.
It is vary vague. As for the housing/food etc I agree. As for the savings they mention savings bonds and nothing really else. The kids have no other income, but again SSA statement it may be "taxable" income. I appreciate the answer for "taxable"
The father is not receiving SSI. He is receiving SSDI.
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