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Asked 6/13/2008

Does my minor child have to file a tax return for a beneficiary payout?

My son is the beneficiary for his father's 401k valued around $5000. Since his father passed in February, my son has been receiving Social Security survivor benefits. He may also get a summer job. I do not think his benefits and job money would exceed the maximum he can earn without having to file. But, since he will also receive a 401k payout, we are unsure how to handle the 1099 information.
The company handling the payout will take 20% off the top and has asked how we will claim this money at the end of the year. They are unsure who's SS # to use for the 1099.
Do I need to report this money on my return? Or, does my son need to file a return and claim it under his name?

 
 
 
 
 
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