Do Social Security Survivor Benefits Count as Income for Tax Credits?


My 64 year old mother in law will need health insurance from Jan 2016 until June 2016 when she is eligible for Medicare. Currently she receives Social security survivors benefits as her only income. Does she need to file a 2014 tax return to be eligible for a 2015 subsidy until she reaches 65, or is she exempt from this requirement since her only income is Medicare? If she is exempt, would the state marketplace (MD) be aware of this and not penalize her for not filing a return?

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I’m on ss. My wife is receiving survivors benefits. She is 62. I’m 67. Do we have to file? Gross is $33,960 annually. Mine is $1166. Hers: $1664.

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Yes, you still have to file. Filing is based on gross income, your gross income is higher than the filing threshold. https://www.hrblock.com/tax-center/filing/filing-requirements/

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If my servivers benifets for tax season is 6000$ for net pay can i apply for taxes if its servivers benifets

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Do you use soul survivors benifts as income when applying for health insurance

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I am so confused! I spoke with some from your customer service dept. today that told me that me and my son’ s survivor benefit would be counted as income?? which statement is right???

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It makes sense that you are confused, the answer we gave was not detailed enough. We are updating the answer, but in the meantime it is: Social Security Survivor Benefits count as MAGI if the person has to file taxes.

Dependents who have income above a certain amount ($6,100 in earned income and $1,000 in unearned income in 2014) must file their own tax return even though someone else claims them as a dependent. (Social Security benefits don’t count toward these thresholds.)

So if you file with your son and that is his only income than he can elect not to file taxes and then you guys don’t have to count that income. If you want to count the income for some reason, then he should file. Only the head of household has to file to get marketplace tax credits. If you are trying to apply for Medicaid, and the state expanded, then not filing taxes and thus not claiming the income may be better as that will net you a lower household income.

Does this help?

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This answer helped me tremendously.
Thank you.

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I’m a widow, found a broker said I don’t have to claim Survivors Benefits as income, I received 1220.00 thru having to finance our business, which ends 2025 ! Last year Market Place considered my Survivors Benefits as income, I can’t afford the new premium w 6500.00 deductible! So is he correct saying w1220.00 I don’t make enough , and don’t have to claim Survivors Benefits?

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You have to file taxes for the Premium Tax Credit and Survivors Benefits do count toward your MAGI if you file taxes. If you had dependents receiving Social Security Benefits, their benefits aren’t counted towards the families MAGI unless they meet the dependent tax filing threshold ($6,300 in 2016).

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