The survivor benefit is not taxable, however, PLEASE fill out a 2007 tax return listing the survivor benefits on line 14A of a Form 1040A or line 20A of a Form 1040. That is the only way to get the one-time $600 Stimulus Rebate ($300 for you, $300 for daughter assuming benefit is paid under your SS#. If it's paid under her number, file a 1040A for her as "single" for $300).

From www.irs.gov;

"Q. I am filling out the special Form 1040A to report my qualifying income. Which Social Security benefits should I report on Line 14a?

A. The economic stimulus law refers to the same definition of Social Security and Railroad Retirement benefits used in IRS Publication 915. Thus, Social Security monthly retirement, survivor and disability benefits, or the Tier 1 Railroad Retirement benefits equivalent to those SS benefits, all count. This is the amount reported to you by the Social Security Administration as “Net Benefits for 2007” in Box 5 of Form SSA-1099 or by the Railroad Retirement Board in Box 5 of Form RRB-1099. Report this amount on Line 14a, Form 1040A. Determine the amount of your Veterans' benefits by multiplying your monthly benefit by the number of months during 2007 that you received the benefit. Supplemental security income (SSI) payments are not considered Social Security benefits and thus cannot be included. Because SSI is not taxable, it is not reported to you on Form SSA-1099. [New 2/27/2008]"