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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Bruce E.
The Rochester NY SSA office has hung up on me twice without answering the phone. I was on hold for over 10 minutes. I need to apply and I need an appointment.
A.C.
Hi, Bruce. We are sorry to hear about your experience. Please be aware our call volume is higher than normal. You may be able to apply online by visiting our Online Services. We anticipate that local Social Security offices will restore increased in-person service to the public in early April. Customers who walk in without appointments may encounter delays. We hope this helps.
Joanne R.
I earned $15,357 and collected 5,364 in retirement. My total income is below the $25,000 reporting limit. When I do my taxes do I still put in my retirement received or just my earned income?
A.C.
Hi, Joanne. 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 helps.
Golfer N.
Thinking of retiring early and playing golf every day? Think again. Every year without earned income reduces your future SS payment. I retired at 52 and my SS payment was decimated.
Kathleen F.
If I die on the 4th of the month and my ssdi is direct deposited on the 3rd down that months check need to be returned to the social security administration?
Kathleen F.
When I receive ssdi, am I paid one month behind or in the same month of receipt. If I die on the 4th of the month and my ssdi is direct deposited on the 3rd down that months check need to be returned to the social security administration?
A.C.
Hi, Kathleen. Thanks for your questions. Social Security benefits are paid the month after they are due. To be eligible for Social Security benefits, a person has to live throughout the entire month to receive his or her check. Therefore, when a person passes away, Social Security benefits are not payable for the month in which a beneficiary dies. This applies whether the person dies on the first or the last day of the month. We hope this helps.
Patty
My mother passed away last May. I have not received a 1099 for her for 2021. How can I get one. I cannot get through on the SS 800 line.
A.C.
Hi, Patty. We are sorry to hear about your loss. The SSA-1099 is mailed to the last address in our records and is intended for the spouse or executor of the deceased. If you did not receive the benefit statement, you will need to contact your local Social Security office with proof of death and proof of executorship. An SSA-1099 can also be given to someone receiving benefits on the deceased beneficiary’s record such as a spouse, parent, or child of the deceased. If you need more information, call our toll-free number at 1-800-772-1213 (TTY 1-800-325-0778) and ask a representative for assistance. We hope this helps.
Constance C.
My brother died and I’m waiting for his 1099. I’m the administrator of his estate. I have called Social Security and have ordered a replacement, but I have not received it.
A.C.
Hi, Constance. We are sorry to hear about your loss. For your security, we do not have access to private information in this venue. We encourage you to continue to work with our offices to follow up. For assistance, please contact your local Social Security office. We hope this helps.
BONITA H.
Can I get earn credit from income tax if I only get ssi a month and no kids
A.C.
Hi, Bonita. Thanks for visiting our blog. Learn more about the EITC, including basic qualifications, at the IRS’ Earned Income Tax Credit webpage. Social Security can’t answer EITC questions.
RAchel
Is it really fair to cap social security if you take the money before it reach the maximum. Since we’re seniors and struggling why can’t our ss income be moved to the maximum we would be entitled to. That would help more than the annual increase because most of it is taken by the Medicare increases. Don’t you have any mercy for the elderly
Cynthia
I am receiving Disability payments. My husband was also, but he passed away last September. Is there any tax benefit if you lost your spouse and are now just receiving my benefit which is not a lot!?
A.C.
Hi, Cynthia. We are sorry to hear about your loss. 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.