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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Flora
I got locked out ssa.gov site for 24 hours, what # to contact for assistance
Angie
1800.772.1213
Marcia B.
Hello,
I am a single retired 78 year old woman and I live in Oregon where state taxes are high. I have a teacher’s pension from California plus very small SSI payment each month. Most of my SSI payment is eaten up by Medicare insurance payments.
Are you here any tax breaks for someone like me? I don’t have any dependent children or relatives.
Thank you
Marcia Blum
Shirley J.
YES. However I believe the process for applying varies from state to state. At one time it was called Extra Help and you applied for it (in Illinois) through either the Social Security office or the state Department on Aging and IT PAYS YOUR MEDICARE DEDUCTIBLES. You also might qualify for Medicaid. Medicare is federal; Medicaid is state. The pharmacy goes with the better plan for your pharmacy co-pays. If you don’t have Medicare part D (drug coverage) the Extra Help pays for that. Call around. Or try possibly USA.gov site called Benefits. One warning: don’t sign up for Medicare Advantage plans bc lots of providers don’t take them and you get locked into it- it’s very limiting.
A.C.
Hi, Marcia. Thank you 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.
Karyn M.
I am in the process of refinancing my home loan. Are any of my costs tax deductible?
A.C.
Hi, Karyn. 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.
William L.
If mine and the wifes SS is less than $32K, but I have retirement income that takes us over $60K, is our SS still not taxable?
Shirley J.
It’s taxable.
Jim O.
Per the website –
As of 2020, SSDI payments are considered taxable for individuals who have over $25,000 in yearly income or married couples with over $32,000 in yearly income (your income is 1/2 of your SSDI benefit plus the full amount of any other sources of household income)
What is the gray area is if the taxes are based on gross income or is after the $25,100 deduction allowed for married couples filing jointly
A.C.
Hi, William. 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 helps.
Don P.
i received a letter from ssa they were going to stop my ssa is this a true letter
Shirley J.
Probably not. Usually when they do stuff they know will upset you they tell you who to contact. If you call social security you can talk to a live person and they sometimes even schedule a callback- it’s like the last government agency that works. You should call them.
Barbara B.
Don’t call the number on the letter however. Could be a false number.
A.C.
Hi, Don. 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.
Tom C.
I started receiving my social security benefit last year, when I turned 70, but have continued to work. Will my benefit be adjusted upwards based on the additional earnings; if so, when will I see an increase in the benefit?
Hans N.
Tom there are four boosts in your Social Security of 8% each year you worked beyond the full (adjusted for birth year) retirement age. After you have delayed your retirement 4 consecutive years you will have reached the max plateau. So no what you earn now will not increase your benefit and what is more you continue to have to pay the Social Security payroll tax (6.8% right now?).
Eton Y.
Tom, I am in a very similar situation and, depending on how much you are still earning the answer could very well be a resounding YES. If I remember correctly, your SS amount is based on your 35 highest earning years. So if your current earnings are higher than one of those years, you will get a bump. Towards the end of the year, you will receive an extra SS payment to retroactively pay that bump since January, and then going forward your monthly SS deposit will reflect that extra monthly bump (again, assuming your current income justifies it). Hope this is helpful.
A.C.
Hi, Tom. Thanks for visiting our blog. 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 details, visit our Receiving Benefits While Working web page. We hope this helps.
Tom C.
Thanks for the information, Ann. Last year’s earnings were the highest of my working career, so I should receive an increase in the benefit. I’ll look forward to getting the letter.
Clinton
Two of my checks were sent to my previous address and my ex misplaced them. I have direct deposit set up now. But how do I find out which ones they were/get replacements?
A.C.
Hi, Clinton. Thanks for your question. If you still need to report a late, missing, or stolen Social Security payment, please visit our Frequently Asked Questions. Thanks!
Joanne R.
My social security and pension total $16,070.16. Do I have to file taxes?
A.C.
Hi, Joanne. 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.
Dr. K.
Joanne,
I think Ann C is wrong. If you earn more than $25,000 you have to pay taxes on the over amount, ie. you make $28,000 subtract the $25,000 you pay taxes on the $3,000, less any other deductions you can claim. You only made $16,070.16 you are way under the threshold before you even get to the taxing issue.
Rosalina
my mom has been leaving with me for many years she is 84 years old and I have never claime her in my incometax. she recives Sosial Security Supplemental. can I claime her in my incometax?
A.C.
Hi, Rosalina. Thanks for your question. 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.
sunny w.
can my caretaker whom is claiming m on her taxes get any tax breaks by claiming me we live together and i get ssdi she pays most of the bills and i pay the utilities bills with my ssdi check
A.C.
Hi, Sunny. 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.