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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Richard K.
I am living in Germany and they are taxing my income that I receive from SSN. I was told I could file to IRS and get this tax back but I do not know what IRS Forms that’s required can someone help me out. Thanks Richard Kirkland
Deanne C.
My son separated from his wife last October, how does that affect the child credit or other deductions since she will not file jointly?
Thank you
Sondra
He will need to verify who is claiming the kids or if he will take the tax credit and she will get the EIC for the kids. Or they split who claims them. If he was to file before her and claim the children and file as separated, he would receive the EIC and child tax credits. Both parties cannot claim the same children. So be careful
A.C.
Hi, Deanne. 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. Thanks.
A.C.
Hi, Richard. 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.
Ron R.
If you are thinking about retiring at 62, keep in mind that Medicare doesn’t start until 65, You may incur fairly large medical costs for the three years until you become eligible….
rose w.
i am applying for spousal benefits..will this affect my sspayments that i will hold off till 70 for?
Albaro
I got a brain aneurysm recently and I think I got disability but I feel I’m getting took.how can I find help to know it’s lagite
A.C.
Hi, Albaro. We are sorry to hear about your situation. 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.
A.C.
Hi, Rose. To qualify for spouse’s benefits, your spouse must be receiving retirement or disability benefits. Keep in mind if you qualify for your own benefits and for benefits as a spouse, we always pay your own benefits first. If your benefits as a spouse are higher than your own benefits, you will get a combination of benefits equaling the higher spouse benefit. Visit our Benefits Planner for more information. Thanks!
Carol G.
I was shocked and horrified to learn that my Social Security was taxed because I made more than $44K!
I was under the impression that after full retirement there was no earnings cap!!
Dinah
I don’t think that when you retire you should have to pay taxes on your money that you have worked hard for. This is an issue that needs to be resolved.
Vicki B.
If I am getting social security already & than retire can my payments go down because I will be making less money.
A.C.
Hi, Vicki. Thanks for your question. We calculate your average indexed monthly earnings during the 35 years in which you earned the most. For details on how your retirement benefit is figured, check out our publication, Your Retirement Benefit: How It Is Figured. We hope this helps.
Yolande C.
Please just tell me if I ma owed tax or not.
A.C.
Hi, Yolande. 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.
Roseanne M.
Question on income while on social security:
Am I able to make any amount of income while on social security and not be affected or penalized by the IRS or taxes?
David L.
If you have reached your full retirement age, like 66, or whatever yours is.
A.C.
Hi, Roseanne. Keep in mind when you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn. For more information, visit our Receiving Benefits While Working page.
As far as taxes, 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. We hope this helps.
Teresarad
Please everyone, stop with the political retoric. We are on this blog to gather info on our Social Security.
Tina D.
I am glad to be alive. thank you
Charlotte
I can’t ever get in to S S website. Keeps saying password is wrong.
A.C.
Hi, Charlotte. We are sorry to hear that. If you are still unable to access an account or encounter a problem with your personal my Social Security account, please call us at 1-800-772-1213 (TTY 1-800-325-0778), Monday through Friday from 8:00 a.m. to 7:00 p.m. At the voice prompt, say “help desk.” We hope this helps.
Marilyn C.
My husband waited over an hour on hold at SS yesterday, then the line went dead. He is trying to get a 1099 for his deceased mother (Feb 2021) so he can file her final tax forms. You need lots more help answering the phone with REAL people who can help.