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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Michael
I’m paying $340.00 for Medicare based on our 2020 tax return. My wife has since retired and our yearly income has decreased considerably. How do I request an audit to have my Medicare lowered?
A.C.
Hi, Michael. Thanks for visiting our blog. If your income has gone down and the change makes a difference in the income level we consider, you can use Form SSA-44, Medicare Income Related Monthly Adjustment Amount-Life Changing Event , to report a major life-changing event and to request a reduction in your income-related monthly adjustment amount. You can submit the completed form and any supporting documents to your local Social Security office. For more information, please visit Premiums: Rules for Higher-Income Beneficiaries. We hope this helps.
D'Ann J.
Are raises we get DON’T include food. Food is very expensive these days and none of our tiny raises takes food into their thought process!!!
There are no tax credits for me. I never asked to be permanently disabled as I was not born this way. A podiatrist (so called dr) screwed up my bunionectomy so bad I immediately lost my career, divorced where he got everything and I had to file bankruptcy as he put all his debt with my name, lost my home my ability to walk I now walk but it always in pain. RSD/CRPS. I didn’t get our second stimulus so I had to file. The IRS took my $600 economic stimulus as money earned and refuses to give it back. So lesson learned!
Suzanne
If you put the 600 in the right spot instead of with your income there is a question if you received it. You can modify your taxes to correct the error. Because no one has to pay back the stimulus.
Randyc
I would like to know that now that I am on ssi and doing some work do I need to continue to have that taken out of my check?
Grace T.
Are you reporting your income to SSA? This may affect the amount of SSI you receive a month. Just a suggestion.
Barbara H.
the raise we just got was a waste for me since the investment group that bought the mobile home park I live in raised the lot rent $65/mo. So in essence I went in the hole – can anything be done??
D’Ann J.
This includes all the raise doesn’t take our ever rising food prices into account when giving us our raise. So I don’t have any answer about your raise of property lot.
Scott D.
I am 72 and receive a small SSI retirement check & pension. My retirement income is under $1100 a month. Prior to 2020 I had a part-time EIC of around $10,000 a year. Covid put me out of work. I received the Covid stimulus checks but was deemed ineligible for unemployment because my last EIC was in November of 2019. Is there a program like the EIC tax credit that will help me out? I am currently dependent on my single mom daughter to survive, creating a significant burden on her.
Debra H.
I am checking to see if my part B application has been received.
Pat
You need to have children to get a break in Taxes? What about seniors who need the income? Why doesn’t the government help its seniors and give them a tax break?
C m.
So true. Soc sec needs to be raised according to inflation. Have you received an answer back?
Dawn
SS was raised, but so we’re Medicare B payments. I went on Medicare in October at $148/month, just to have it raised to $170/month.
Vanessa
You don’t need plan. All you need is Plan A That is what I read. All you have to do is cancel Plan B. If you want Plan B there are many providers out there that offer Plan B which will not take anything g from your Social Security payments.
Dawn
Because they don’t care about the seniors.
D’Ann J.
Absolutely!!!
Christopher D.
I Ned help my employer has a employment scheme fraud my name is Christopher Devon Davis
Scot
Is my SSDI income taxable?
I’ve been told no by tax advisors, but the IRS website says a portion of it. What portion & how do I know / figure it out?
kg
SS payment increased (over 6%), my income was far less las year, and yet my after tax & medicare deductions is less than last year. I have a hard time calling SSA number – never get response or very long waits and then the call drops. Is there a better way for me to resolve this?