Tax Season: What To Know If You Get Social Security or Supplemental Security Income
Reading Time: 4 MinutesLast Updated: November 2, 2023
It’s tax season once again. It’s important to read this blog even if your earnings or benefits don’t require you to file a federal tax return. You may be entitled to special tax credits that can mean extra cash to help you with expenses. These tax credits are available even if you receive Supplemental Security Income (SSI) and don’t normally file a tax return.
The Child Tax Credit
What is the Child Tax Credit (CTC)?
The CTC is a tax benefit, expanded in March 2021, that helps families who are raising children. You can claim the CTC for any qualifying child even if you don’t usually file a federal tax return. You can get up to $3,600 per qualifying child under age 6, and up to $3,000 for each qualifying child age 6 – 17. These ages are determined as of December 31, 2021.
Am I eligible for the CTC if I get Social Security or SSI?
Yes, if you meet the qualifying rules of the CTC. You can claim this credit from the Internal Revenue Service (IRS) based on each of your qualifying children, even if you get Social Security or SSI and don’t normally file a tax return. You also may have received up to half of your credit through advance monthly CTC payments made by the IRS from July to December 2021. For more information about advance monthly CTC payments, you can visit ChildTaxCredit.gov and the IRS 2021 CTC and Advance CTC Payments Frequently Asked Questions.
Will advance monthly CTC payments, or any CTC I claim on my tax return, reduce my Social Security or SSI benefits?
Advance monthly CTC payments, as well as any CTC that you claim on your 2021 tax return, won’t reduce your Social Security benefits.
If you receive SSI, we won’t count the CTC (or any advance monthly payments you might have received during 2021) as income or resources for 12 months after you receive it when considering your eligibility for SSI and monthly SSI payment amount. If you received any advance monthly CTC payments, be aware of when you received them. You can get that information from the IRS Child Tax Credit Update Portal.
How do I claim the CTC?
You can claim the CTC when you file your federal tax return for 2021. You can visit ChildTaxCredit.gov for options to file a federal tax return for free.
What if I have questions about the CTC?
Please visit ChildTaxCredit.gov and read IRS Filing Season 2021 CTC Questions and Answers if you have questions. Social Security can’t answer CTC questions.
The Earned Income Tax Credit
What is the Earned Income Tax Credit (EITC)?
The EITC provides low- to moderate-income workers and families a tax break. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund. The EITC amount you might get generally depends on your earned income and the number of your qualifying children.
Am I eligible for the EITC if I get Social Security or SSI?
Yes, if you meet the qualifying rules of the EITC. Receiving Social Security or SSI doesn’t affect your eligibility for the EITC.
Do my Social Security Disability Insurance (SSDI) or SSI payments count as earned income for the EITC?
Learn if your disability payments count as earned income for the EITC at the IRS’ Disability and the Earned Income Tax Credit webpage.
How do I claim the EITC?
To claim the EITC, you must qualify and file a federal tax return. You can visit ChildTaxCredit.gov for options to file a federal tax return for free.
What if I have questions about the EITC?
Learn more about the EITC, including basic qualifications, at the IRS’ Earned Income Tax Credit webpage. Social Security can’t answer EITC questions.
Your Annual Social Security Benefit Statement
What is the Benefit Statement and what do I do with it?
Your Benefit Statement is a tax form from Social Security that shows the total amount of Social Security benefits you received in the previous year. It’s also referred to as an SSA-1099. Noncitizens who live outside of the United States receive the SSA-1042S instead of the SSA-1099. You should report the amount of Social Security income you received to the IRS on your federal tax return.
The Benefit Statement isn’t available for people who only receive SSI payments because SSI payments aren’t taxed.
How do I get my annual benefit statement?
If you receive Social Security benefits, we mailed your Benefit Statement to your address on file with us. If you didn’t receive it, or if lost, you can get your SSA-1099 or SSA-1042S instantly online with a my Social Security account.
Remember to Check your Earnings History
If you don’t receive Social Security benefits, this is a great time to review your earnings history by looking at your Social Security Statement (Statement). It’s important because your future Social Security benefits will be based on your earnings history we received from the IRS. Underreported earnings will mean lower monthly benefit payments when you are ready to start receiving them.
Use your Statement to review your earnings history and to see personalized benefit estimates so you can plan for your future.
Tax season doesn’t have to be a stressful time of year. And for many people, it’s an opportunity to claim additional money. Thanks to the American Rescue Plan, more Americans can claim larger Child Tax Credits and Earned Income Tax Credits for 2021.
Please share this blog with family and friends and remember that Social Security is here to help secure your today and tomorrow.
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Tags: General Information, my Social Security, my Social Security account, Social Security benefits
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Darlynda Bogle, Acting Deputy Commissioner for Communications
Darlynda Bogle, Acting Deputy Commissioner for Communications
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Shelia
If a worker 63 years old exceeded the earnings limit annual earnings limit by $6,000.00 how much would that individual have to payback or is that amount reduced the following year?
A.C.
Hi, Sheila. If the worker is younger than full retirement age during all of 2022, we must deduct $1 from their benefits for each $2 they earn above $19,560. For more information and examples about how work affects a worker’s benefits, check out our publication, How Work Affects Your Benefits. We hope this helps.
Jodi
I received a settlement from ssi for 13000 will I b penalized every month for having that income?
A.C.
Hi, Jodi. Unfortunately, your question is a bit more complex than we can answer in this forum. For your security, we do not have access to private information in this venue. We ask that members in our Blog community work with our offices with specific questions. You can call us at 1-800-772-1213, Monday through Friday, between 8:00 a.m. and 7:00 p.m., for assistance. You can also contact your local Social Security office. We hope this helps.
NorthernGreenEyes83
Curious as to why the authorized copy of my identification card from the bureau of motor vehicles in OH can’t be used to get a replacement social security card.
I needed it to prove my identity to the IRS to receive my stimulus checks.
I’m experiencing serious financial hardship and by this ridiculous rule it has been made worse.
I a US citizen, I’ve got my birth certificate, lease, current utilities, medical card, etc.
None of that could’ve been accepted?
A lady from social security that signed people in told me that they wouldn’t accept that even though everyone receives a temp copy to use until the actual ID is delivered 30 days later. I couldn’t get my ID with the documents I had, now I can’t get my social security without my ID. Granted, it’s a temp copy but it’s a legitimate government letter.
Ahhh well 🤷♀️ it is what it is.
Just know there are many more people like me who still need stimulus checks and it shouldn’t be THAT difficult to verify an identity.
Al H.
How do I request additional money to be taken out ,of my monthly benefits to address my taxes due at the end of the year?
How do change deductions?
A.C.
Hi, Al. Thanks for your questions. In order to have taxes withheld or to change the amount of your withholding from your Social Security benefit, you must start by printing, completing and submitting an IRS Voluntary Withholding Request Form (Form W-4V). On this form, you can choose to have 7, 10, 12, or 22 percent of your monthly benefit withheld. The Form W-4V (to withhold federal taxes from your Social Security benefits) can be returned to your local Social Security office by mail. See our Benefits Planner: Withholding Income Tax From Your Social Security Benefits web page for more information. We hope this helps.
FRANK G.
how do i go about stopping my voluntary tax withholdings,if i am not required to file income tax?
A.C.
Hi, Frank. Thanks for your question. To change or stop your withholding, from your Social Security benefit, you must start by printing, completing and submitting an IRS Voluntary Withholding Request Form (Form W-4V). The Form W-4V (to withhold or to change your withholding federal taxes from your Social Security benefits) can be returned to your local Social Security office by mail. See our Benefits Planner: Withholding Income Tax From Your Social Security Benefits web page for more information. Keep in mind you must pay taxes on your benefits if you file a federal tax return as an “individual” and your “combined income” exceeds $25,000. If you file a joint return, you must pay taxes if you and your spouse have “combined income” of more than $32,000. If you are married and file a separate return, you probably will have to pay taxes on your benefits. For more information, visit our Benefits Planner. For tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040 or you can visit their website. We hope this information is helpful.
Vickie S.
My 6yr old only received the $1400.00. She’s on ssdi. She has cerebral palsy and autism. She didn’t receive the $600.00. No $1200.00. No $300.00 a month. I tried to file taxes but I was told by the IRS since I had no income I couldn’t file.
Anthony f.
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Anthony f.
I would like more information about this site.
Anthony f.
Does SSD get increased benefits
A.C.
Hi, Anthony. Please visit ChildTaxCredit.gov and read IRS Filing Season 2021 CTC Questions and Answers if you have questions. Learn more about the EITC, including basic qualifications, at the IRS’ Earned Income Tax Credit webpage. Social Security can’t answer CTC or EITC questions. We hope this helps.
Merrill G.
Must we pay taxes on Medicare Part B premiums?
A.C.
Hi, Merrill. Thanks for visiting our blog. While a person may need to pay income tax on Social Security benefits, Medicare premiums and out-of-pocket costs typically are tax deductible. Original Medicare comprises of Part A, hospital insurance, and Part B, medical insurance. For additional federal tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040 or you can visit their website. We hope this information is helpful.
Coronado27eduardo@gmail.com
Tax season.
Deb E.
I am 72 and have been receiving my own SS benefit since I was 62. Just found out that I could apply for additional spousal benefit since my husband’s (age 73) 50% SS benefit is about $500 per month higher than my own benefit.
How to verify if I do qualify for spousal benefit and how to apply? Thanks for your help.
A.C.
Hi, Deb. To qualify for spouse’s benefits, your spouse must be receiving retirement or disability benefits. Keep in mind that if you qualify for your own benefits and for benefits as a spouse, we always pay your own benefits first. If your benefits as a spouse are higher than your own benefits, you will get a combination of benefits equaling the higher spouse benefit. Visit our Benefits Planner for more information. For specific questions, please call us at 1-800-772-1213, Monday through Friday, between 8:00 a.m. and 7:00 p.m., for assistance. You can also contact your local Social Security office. We hope this helps.