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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Susan E.
Going back to work isn’t as simple as it seems. While on SSDI, I tried going back to work teaching math on a part-time basis. During the nine-month trial period, I earned about $1000 per month, sometimes more, from several different employers. Although I was praised for the quality of my work, I was not hired long-term because of my age, over 60, and inability to work more than part-time due my disability.
In October, 2013, after the 9-month trial period was over, I was able to find a wonderful part-time job teaching math at a private high school for $1100 per month. It was $60 per month more than I was permitted to earn while on SSDI. I wasn’t concerned because I had more than $60 per month in medical expenses due to copays for my psychiatrist and therapist visits and psych-related medications.
Unfortunately, when I went to my therapy appointment in October, I discovered my therapist had suddenly died that morning. I rescheduled the appointment with another therapist, who wasn’t able to see me until November. As a result, I didn’t pay that $30 copay during October. However, I did pay an additional $60 in therapy copays in November and December, 2013. Although I was praised for work, I wasn’t capable of working longer hours, so I was replaced by a full-time math teacher after May, 2014.
To make a long story short, that $30 shortage in medical expenses during October made me ineligible for SSDI on January, 2014. Unfortunately it was not discovered by Social Security until 2016. As a result, I was required to return over $30,000 in SSDI back to Social Security. In spite of several hearings and appeals, which are still ongoing, I have not recovered that $30,000 for a mere $30 overpayment that was beyond my control.
I regret enrolling in the Back to Work program because I would have been far better off financially if I hadn’t tried to return to work. During the period I was forced to repay the amount, I had no income yet was required to pay for Medicare our of my meager savings. The repayment and appeals have further drained my finances, time, and emotional well-being.
I feel that the program should have been administered more fairly in order that I would not have been punished so harshly for a $30 overpayment. While I was seriously attempting to go back to work to achieve a sense of purpose and financial independence, I have sacrificed a third of my net worth at 68 for doing what should have been the right thing.
Marci B.
Susan, I am so sorry for your financial loss, and that somebody – either from Social Security or the Ticket to Work program didn’t explain to you how things work. Otherwise, it’s up to you to navigate thru tons of paper to find the answers in advance.
I’ve developed proposed legislation to change these laws, which serve nobody. These laws are disgusting!
I wish you all the best.
Marci B., Chicago
Susan E.
Apparently no one cares.
I am a HS Valedictorian, math teacher, MBA from Northwestern, and a person of faith, kindness, integrity, generosity, strong work ethic, and resilience.
In spite of mental illness, I have accomplished a great deal. Because of mental illness and society’s attitude toward it, I haven’t been able to support myself.
Yet, the government that’s supposed to support me has robbed me of over $30,000 for a $30 technically in SSDI.
I don’t feel sorry for myself any longer. My life is blessed in so many other ways. If the world will allow me, I’ll continue to try to use my gifts for my family, community, and more.
I know I’m not the only one who has been treated so unfairly. I simply wish that someone cared enough to help us.
Edward J.
I would like to know, if my social security disability taxable. I am a 100% Total and Permanent Disable Veteran Affairs rated veteran, my age is 75. SSA awarded me SSDI due the fact my condition could/would not allow me to pursue/perform gainful employment. I am retired military and retired civil service employee, and my retired pay from both are taxable. However, need clarification on the taxability of my SSDI.
Respectfully
Rachel
Neither of your incomes are taxable! You should go to IRS.gov and type that question in and see what the response says. I’m sure you will be surprised!
Marci B.
No. Only other income CAN be taxable.
A.C.
Hi, Edward. 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.
Carol
My brother died on Feb. 4th, 2022. His January SSI check also arrived on the 4th of Feb. I need to cash his paper check so I can pay some of his bills but I don’t know how to do that. My bank won’t let it go through because he didn’t have an account there. Can anyone help?
Marci B.
I am so sorry to tell you this. Technically speaking, since he died on 2/4, you must return his check to Social Security. You are not allowed to have it. Disability payments are made in advance, so he would not qualify for the next month.
A.C.
Hi, Carol. Unfortunately, your situation is a bit more complex than we can handle in this forum. 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.
Sue E.
I just want to get a copy of my W2 form for taxes. Your site would not accept my old sign in. I went through a hour plus updating my information and in the end it told me I will have to wait another 15 days, HELP please and thank you.
A.C.
Hi, Sue. Thanks for visiting our blog. For a copy of a W-2, you should contact your employer’s human resource or personnel office. If you are referring to the SSA-1099 showing the amount of benefits paid to SSA beneficiaries during last year, you can get additional information on how to request a replacement SSA-1099/1042S for Tax Year 2021 by visiting our Frequently Asked Questions. You also may be able to request a replacement SSA-1099 by using our automated telephone service at 1-800-772-1213. You can conduct the automated services 24 hours a day. At the prompt, indicate that you’re requesting a replacement SSA-1099. We hope this helps.
Candace L.
A widow who is 67 years old is receiving her husband’s benefits (survivors benefit). He was rcving disability benefits and was 65 when he passed.
Now that she is 67, why can’t she receive her SS benefits also?
She has been told she cannot receive both and of course her benefits would be much lower than what she receives now.
Marci B.
So sorry, again. You cannot receive survivor’s benefits from Disability Social Security; only from Retirement Social Security.
A.C.
Hi, Candace. Thanks for your question. She will not receive both benefits, but the higher of the two. It sounds like she began receiving the survivor benefit first. Since she is full retirement age, she could switch to her own retirement benefit at an unreduced rate if it is higher. For more information, visit our If You Are the Survivor page. For additional specific questions, she can call us at 1-800-772-1213, Monday through Friday, between 8:00 a.m. and 7:00 p.m., for assistance. She can also contact her local Social Security office. We hope this helps.
Ace
My son is disabled since birth he’s 27 now . How do I claim the costs of a Ada
Van and the insurance is just for his need
In 4 yr the fan cost around 30,000 and 1,350 insurance each year
How can I clam any off it ?
Marci B.
If he lives with you, and is at least 50% dependent on your for his living costs, you can write certain expenses off on YOUR tax return. Consult a good tax agent to do this.
A.C.
Hi, Ace. 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.
Margaret B.
Why is there such a drawn out calculation to see if a person’s Social Security is taxable when it is stated that if a person collects less than $25,000.00 does not have to report their Social Security income. Six years ago I just started collecting my Social Security the last four months of the year. It was definitely under $25,000 yet by using the drawn out form to see if it taxable after the IRS told me I was required, I had to pay a subsantial amount of money in taxes. The amount of Social Securit for that taxing year was $3,000.00 I just don’t understand it
Judy B.
If 100% of your income is from Social Security and you earned less than $25,000, then you owe no income taxes. But if you also have earned income, it doesn’t matter that you got less than $25,000 from Social Security–the rule doesn’t apply. Many people have both Social Security and a pension. If your total income does not exceed certain levels, you may not owe taxes on some or all of your Social Security income. That’s why you need to do the calculation.
Murray D.
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.
I didn’t see anything about this!?!
Robert S.
The Child Tax Credit discussed above is the special tax credit to which they were referring.
Richie V.
Just turned 62 Feb 20, 2022. Will be drawing early SS benefits beginning in April 2022. Do I have to pay income tax on my monthly benefit? I’m getting conflicting information.
Susie S.
Only if you elect to have taxes taken out of it.
Ben Z.
It depends on your AGI for the year. Your AGI would be a total of half of your annual SS benefit, wages, pension, retirement distributions, interest income (including non-taxable interest), dividends, capital gains, etc. If you are single with an AGI under 25 K there is no tax on SS income, If AGI is between 25K-34K then 50% of your SS benefit is taxable. If AGI is over 34K then 85% of your SS benefit is taxable. The formula remains the same for married people but income cutoffs would be higher. Happy retirement!
Dale M.
That’s why the IRS issued publication 915 with Worksheet 1 that has 19 steps to determine how much of your social security benefit is included in your taxable income.
A.C.
Hi, Richie. Thanks for your question. 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.
Jimmy
I’m 69 and live in California.
Social security is only money that is coming in to my house hold do I need to file federal are state?
A.C.
Hi, Jimmy. For 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. For state tax questions, you will need to contact your State Tax Commission or Department of Revenue. We hope this helps.