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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Dave K.
If I start collecting Social Security in January but do not file income taxes until April, how will Social Security use my last year’s income for calculations? One source said that Social Security does not use the year in which one files with regards to benefit calculations? So if that is true and one filed in October for benefits would that year count or not?
Ann C.
Hi, Dave. Thanks for your questions. As long as you continue to work and receive benefits, we will check your record every year to see whether the additional earnings will increase your monthly benefit. If there is an increase, we will send you a letter telling you of your new benefit amount. For more information, please visit our Receiving Benefits While Working page. We hope this helps.
Linda ".
I am 74 years old and have started working part time. How much will SS take away from me for working.
Ann C.
Hi, Linda. Thanks for your question. When you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn.Also, as long as you continue to work and receive benefits, we will check your record every year to see whether the additional earnings will increase your monthly benefit. If there is an increase, we will send you a letter telling you of your new benefit amount. For more information, please visit our Receiving Benefits While Working page. We hope this helps.
Jane
Do I have to report disability payments on tax returns?
Ann C.
Hi, Jane. Thanks for your question and thanks for visiting our blog. 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.
pat L.
I plan to retire 1/2023 at 68. when will I get my first check?
Ann C.
Hi, Pat. Thanks for your question. Retirement benefits are paid the month after they are due. So, for instance, if your want your benefits to begin with the month of January, you will receive your first payment in February. The exact payment date is determined by your date of birth. Check out our Schedule of Social Security Payments page for more information. We hope this helps.
Clifford J.
Hello, my ssa account status show I’m approved for supplement security income and it’s been a year and I,ve not received any monthly payments or back payments. Ssa personal told me I’m not getting back pay because my daughter loan me $300 for doctor visit, ok will I receive any monthly payments,it shows I’m approved as disabled person.
Ann C.
Hi, Clifford. Thanks for visiting our blog. We are sorry to hear about your situation. For your security, we do not have access to private information in this venue. We encourage you to continue to work with your local Social Security office for assistance. We hope this helps.
Erin D.
Yes hello, I’m on SSDI in Pennsylvania,How can I get help if I accidentally didn’t fill my my 2021 freefile tax return right it said I qualified for the EIT but then says it’s back to zero cus I filled something out wrong or left blank…please help! Or send me to.the right place to figure.it.out please?!
Ann C.
Hi, Erin. Thanks for visiting our blog. 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.
Frank J.
Just signed up for medical insurance and I am just wondering I got a 649.00 tax credit but on ssi do I have to pay that back if my income is bellow 11.000 00 a year and I make 841.00 monthly. To the irs as far as the tax credit for medical is concerned
Ann C.
Hi, Frank. Thanks for visiting our blog. 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.
Kim H.
If I apply to get benefits in December 2022, and my first SS check is in January 2023, will I get a 1099 for 2022 or only a 1099 for 2023 for the total actual amount received in 2023? Thanks
Ann C.
Hi, Kim. Thanks for question. An SSA-1099 is a tax form we mail each year in January to people who receive Social Security benefits. It shows the total amount of benefits you received from Social Security in the previous year so you know how much Social Security income to report to IRS on your tax return. We hope this helps.
Marlene G.
Remarried last year didn’t change my name. IRS digital submission states my name & social security do not match & our tax person had to file for an extension.
carmen075@aol.com
hi i get social security do i have to do my taxes at the end of the year if i don’t have any taxes taken out of my social security and if so would i have to pay maria thank you
Ann C.
Hi. Thanks for visiting our blog. 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.
Ann C.
Hi. Thanks for visiting our blog. 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.
Victor v.
I’m on SSI, A few months ago I went to the casino n played a slot machine n ended up hit the jackpot for2,570 I recently received a w2-g, I have to pay on those winnings?, how much cuz I need to get on a payment plan, those winnings are gone on bills n other tjinvs
Ann C.
Hi, Victor. Thanks for visiting our blog. if you are receiving Supplemental Security Income (SSI) benefits, and you had prize winnings, we will count the winnings as “unearned income” and may temporarily or permanently suspend the SSI payments. To learn what types of income can affect SSI payments, please visit our Supplemental Security Income page. Remember that SSI benefits are based on income, resources and living arrangements. A person receiving SSI should report all changes of income to us immediately. If you still have questions, or for further assistance, you should call our toll-free number at 1-800-772-1213. Representatives are available between 8:00 a.m. and 7:00 p.m., Monday through Friday.
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.