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
See CommentsAbout the Author
Darlynda Bogle, Acting Deputy Commissioner for Communications
Darlynda Bogle, Acting Deputy Commissioner for Communications
Comments
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Judith B.
I am married but receiving a Social Security Check. My spouse is still working. When doing our yearly taxes do we need to list my social security income? Social security is all I get. I do not have any other income (IE: not working, completely retired and loving it) Please advise. Thanks.
Mike K.
As of 1983, SS is taxable. There is a convoluted SS worksheet found in the instructions to fill out, but not filed with taxes. Basically, ALL household income is added. If it is over $32K, then a percentage of 50% of your SS might be taxable. As of 1994, if the income is over $42K, then a percentage of 85% of your SS income might be taxable. These $32K and $12K limits are not indexed with inflation and have not increased in 37 years. Each year, more and more of retires SS income is taxable.
Mike K.
Few corrections to my response.
The $42K should be $44K ($32K+$12K).
And spelling, retires –> retirees.
A.C.
Hi, Judith. 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 helps.
Favi
I just started getting SDI last year but got a lump sum from previous years due. I received a SSA-1099 do I have to file taxes?
A.C.
Hi, Favi. 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 helps.
Tracy A.
This is Tracy alan boyer I want to know why am I only getting $714.34 on my checks each month when I should be making over $1000 dollars a month since I just turned 58 last year on the 18th of December Tracy boyer cell phone number is 210-944-5746
Jim
do not put personal into on public sites
A.C.
Hi, Tracy. 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. Just a reminder – please be cautious about posting personal information on social media. We hope this helps.
Sue D.
My husband has Medicare B and D can i deduct these amounts as medical expenses ?
A.C.
Hi, Sue. 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 helps.
Pat L.
When I was ready for full retirement I opted to take the spousal benefits. This May I turn 70. Do i have to do anything to apply for my full benefits plus the bonus!
A.C.
Hi, Pat. Thanks for your question. Since you are currently receiving benefits, you will need to contact your local Social Security office to file a new application for benefits on your own record. We hope this helps.
Douglas H.
Is the penalty for not paying for the drug portion of medicare in the first year a lifetime fine? My wife is turning 76 and has been paying this fine (additional premium) for many years. This doesn’t seem like a just penalty for overlooking an item 11 years ago.
With limited income every dollar matters.
Thanks for responding.
Naomi M.
Yes, it is for the lifetime. Pretty bad deal. I thought the penalty would only be for a year but it is until death. Bummer!
Bill
Go to your local SSI office
ASAP, also call one of the many Medicare advisers to get a better plan
A.C.
Hi, Douglas. In most cases, if you don’t sign up for Part B when you’re first eligible, you’ll have to pay a late enrollment penalty. You’ll have to pay this penalty for as long as you have Part B. Your monthly premium for Part B may go up 10% of the standard premium for each full 12-month period that you could have had Part B, but didn’t sign up for it. For more infomation, visit Medicare’s Costs At A Glance page. We hope this helps.
FYI
Do you answer questions?
Please indicate clearly on your website.
Margaret C.
I have Medicare Part A andB can I deduct this amount $1,782 o n my itemized deductions section as a medical expense?
Ken
Yes
eleanor
Medical expenses must be over 7.5% of your gross income and can only be used if you do not take the standard deduction for your age and claiming status.
A.C.
Hi, Margaret. 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 helps.
A.C.
Hi. We respond to questions and provide general information on our Retirement, Survivors, Disability, Medicare and SSI programs. If you have a general question, we encourage you to ask here. But remember, never post personal information on social media. Thanks!
Heide J.
I Currently receive SSI disability. When I turn age 62 will I still receive that or go to SSI? Will I earn more?
Ken
You will turn to ssi sn it will be lower
b.bhenry@yahoo.com
I just switched over from disability to regular SSI. I turned 65 last November, you got a little more time
A.C.
Hi, Heide. The Supplemental Security Income (SSI) program is a needs-based program that pays benefits to disabled adults and children who have limited income and resources. SSI benefits also are payable to people 65 and older without disabilities, who meet the financial limits. Social Security Disability Insurance (SSDI) benefits, on the other hand, are based on earnings and are not subject to income and resource limits. For more information on the difference between Social Security disability and SSI, check out our Frequently Asked Questions.
If you are receiving Supplemental Security Income (SSI) , become insured and qualify on your own record for retirement benefits, then you are required to apply at age 62. We conduct “redeterminations” periodically to identify SSI recipients who –at any time- are potentially eligible for any or other Social Security benefits on their own record and the records of others (e.g., spouse’s, divorced spouse’s or widow’s benefits). Failure to apply for additional benefits will result in suspension or termination of their SSI benefits. If you have additional 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.
Iftikhar L.
I have only income is SSI. Which is close to $2000 a month, do I have to file taxes ?not sure. Didn’t get a clear answer from my tax prepare. Please advise
Ken
No
Ken
If married
Single it’s 16500exempt if over 65 another 1200 330 on deductible
An other credits
So chances are you will be at zero
A.C.
Hi, Itfikhar. It sounds like you are referring to Social Security benefits. 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 helps.
marilyn m.
what is the cut off for drawing social security so it is not taxed?
A.C.
Hi, Marilyn. 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 helps.