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.
Did you find this Information helpful?
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
Comments are closed.
Red’s
Agreed we paid taxes while we worked including social security and know it’s being taxed again.Talk about double dipping you guy’s are the kings.
Debby G.
When your SS tax is assessed on your current wages it’s at a decades old tax rate that has not kept pace with tax rate increases throughout the years. Therefore, when you collect your SS wages you have to pay the difference between the rate at which you were taxed and the tax rate currently in effect; about 12-15%. I know it seems like double dipping (I was irate the first year after I retired), but it’s not.
Mary
Thank Ronald Reagan and his GOP administration for taxing your Social Security benefits.
Tim
That was Joe Biden, as Senator and Senator Ted Kennedy who came up with taxing S.S., not Ronald Reagan…
Dan
Ah, very interesting topic. The Congress removed themselves from social security and other benefit plans. Do they pay tax on their retirement payments? I do not know. I have long thought we should have a voter referendum to put Congress back into SS and Medicare. If they were in the system, They would make better decisions about how to manage them. Instead, they kick the can DTR and leave us in Limbo! Too bad this post will not see many eyes.
Jean C.
Up until Ronald Reagan became President, Social Security income wasn’t taxed. He changed it. My state doesn’t tax Social Security.
Guiseppe
The limits when you pay taxes on SS funds needs to be raised. It’s been the same since the beginning. Single and married should be raised much, much higher for todays and future ss enrollees.
GAW
there is no reason to pay tax at all!!!! it is our money, that we paid tax on when we earned it. BIG Gov is just giving it back, but then they tax it. it is taxed twice: when we earned it and when we get some of it back.
Michelle B.
I don’t think any senior citizen should have to pay any federal, state or local taxes even if they continue to work. We have worked all of our lives and paid lots of taxes and should be able to enjoy what is earned at retirement age and not having to hand it over. I could go on but I think you got the jest of my comment.
Carol
👍agree
Patricia C.
Hello – I agree with your points, for middle and low income people. However, I also got the “jest” of your comment, meaning that it’s a far reach that your suggestion would be taken seriously by our legislators.
KIM D.
ABSOUTELY WE HAVE PAID INTO THE SYSTEM ALL OUR LIVES, & WHAT LITTLE PENSION AND SOCIAL SECURITY WE GET SHOULD BE OURS TO FINALLY CHILL OUT AND ENJOY
FRANK M.
AGREE.
With inflationary costs all across the board we need all the available funds to pay for medicine, doctors andliving expenses
Ken
Agree
PAMELA T.
I agree, I have worked for 55 years and paid taxes, now I am still paying real estate, personal property taxes and paying part B of Medicare is crazy. I will never live long enough to get a third of my money back.
rafael L.
Agree 100 %
Thomas
100% Correct
Carol M.
Check into benefits where you live. Some counties and cities offer exemption and/or reduction of taxes. Others offer rebates/refunds of utility taxes paid. Contact your local government offices or check out their websites for any benefits they may offer to Seniors.
Mike S.
Yes there is local benefits. But the problem is that most of
us on SS make to much to qualify. By 50 to 100 dollars a
month! I have checked into all available programs
around me and that has been the result every time. I can
not even get food stamps. Guess I need to work on my
tan and language skills. Or become a politician and get
rich in the stock market.
Mike
I agree, I used to qualify for Medicares “extra help” program, to help me pay for my Diabetes meds which were $1800/mo just for 1 med. I take my others of course. But when SS gave us a small raise I think it was $18/mo for me, I made to much money, now it will cost me $550/mo.
Mike d.
Don’t worry the Mexicans will use it for you once they get flown wherever they want to go in the US and we put them up into Hotels to live in.
Jean C.
Give it a rest. Go on a political site if you feel the need to spout off. This discussion is about taxes and Social Security.
Ron
I agree 100%. I barely make ends meet now and I can’t even afford to do repairs to my house and my local taxes just went up again not to mention everything else that went up including utilities.
Gloria H.
Yes, I agree 100ith what everyone says. I will turn 83 in four days and have outlived any retirement savings I had accumulated. The property taxes in PA are outrageous, and continue to take everything I have to survive. If I sell my house (which I can’t afford to maintain), then any profit I might make won’t cover the cost of any other type of housing. What am I to do — caught between a “rock and a hard place” and no possibiity of getting an tax relief. I just can’t afford to live and pay property taxes and gas and food …….. etc….
Shirley C.
Perhaps you could find someone in a similar position and charge them rent to share your house? You both could enjoy the company and you could use the funds to maintain and repair your house.
Bartley M.
Yes! Absolutely. I’m 74 and I’ve paid my share of taxes.
Inez
I totally agree! All seniors must let Congress know how we feel about this very thing!
Cindy
Agree!
Nad f.
michelle are u kidding? if you feel that way go to a communist country that way everyone is equally miserable!
Mike d.
Your obviously not retired yet to understand it, but you will if SS is still around when you retire.
Wanda
Agreed.
Melody R.
THE WHOLE TRUTH AND NOTHING BUT THE TRUTH!!
Timmons
Agree
Larry
I agree also! Seniors (for the most part) are retired and past their earning years. How can the government be so crude as to tax us yet again?!?
Marie
So do you file taxes when receive social security or not?
Lisa
No
Vanessa
I have a calculation form that Social Security sent me. This is form SSA-1099. On the back is like a small calculation form. Very simple. Anyway on the calculation page this reads if you received 25,000 or more from Social Security part of your social security may be taxable. I am guessing you won’t have to pay. Because I doubt anyone receives that much.
Vanessa
So in fact Lisa is right.
sandy p.
i agree
Ric J.
The fact is that if you have additional income from other sources, including RMD’s, IRA’s, mutual funds, rental income, etc, added together with your S/S amount….to equal to or surpass a threshold amount….the IRS can and will tax up to 85% of your total Social Security income. There’s no gettin around taxes. The more you make, the more they take!
A.C.
Hi, Marie. 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.
Miguel g.
I receive 24,000 and change plus Mt wife receives 18,000 on her part and we are home owners and have been paying interest on mortgage and property taxes for the past 4 yrs. Are we supposed to file? I was told from an accountant I did not have to due to not earned income. Please clarify.
A.C.
Hi, Miguel. 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.
Julie A.
Does that earned income include the SS income? Or is it the amount over and above SS?
Marie'
I’ve only got one SS I check. I can’t get into my account to look at my statement. But I haven’t haven’t filed taxes yet.
Denise S.
Absolutely agree. We are and were the foundation of this country, now we should be able to rest.
kmk
wow … as an intelligent US citizen … I am not entirely surprised by the ignorant comments on this site because they have become common place anywhere comments can be made … but shame on all of you for taking yet another opportunity to talk about nothing to do with the subject at hand … I see why the Social Security Administration has not responded … the comments are not worth their valuable time … so just STOP it … smh
FED
YES! KMK, I was thinking exactly the same thing. Another possible source of accurate information has been hijacked by the willfully ignorant.
Robert S.
This is a blog, not a forum! Stay on topic!
Pam M.
Good Morning My Fellow Baby Boomers!🙏
It is by GODS GRACE that we are living today.
Everyone did not have that same outcome this morning.
We need to be on One Accord and Pray 🙏 that We DONOT Have A World 🌎 War 111.
Name Calling CANNOT Take The Place Of OUR PRAYERS. WE Need To Pray And Ask GOD To CONTINUE To Protect And Bless US HERE AND ABROAD. PROTECT OUR TROOPS That Are Being Sent To Assist The People Over Seas And Those That Are Under Attack.
PRAYER WORKS! WHERE THERE IS UNITY THERE IS STRENGTH!
MAY GOD BLESS 🇺🇸 AMERICA 🇺🇲 AND THE ENTIRE 🌎!
Have A BLESSED Weekend EVERYONE!
Diane
I am trying to figure out how much, if any, of my SSA is taxable. 1040 forms says it depends on adjusted gross income, but to calculate AGI, I am supposed to include the taxable amount of my Soc. Sec. benefits. So, I’m confused.
Shirl
You put in the total amount of SSA that you received and work the forms from there.
Robert S.
Use the Social Security worksheet that they supply with Form-1040. It all depends on how much you earned over and above.
Joe
If you use computer tax software such as TaxAct or Turbo Tax, they will automatically calculate the SSA tax based on your entries into the software. If your AGI is high enough, then the SSA get taxed at 85%. I am not sure what the cut off is for the AGI. This is where the software comes in as being useful.
Denise S.
Wow, 85%? even though I paid taxes on this throughout my working lifetime? Unfortunately, Im in that 85% bracket because Im still working(business owner). So I think they want you to be broke at retirement age(just getting by).
Is there a Cap on this(age wise) that they discontinue taxing SSI ?
Rosa
Hew do we find out that if we received $8?? dollars in extra tax credit for the 2020 tax filing period. This was after filing jointly for 2020 and receiving a tax refund. Did we receive an extra check for the $800.00 dollar amount?
A.C.
Hi, Rosa. 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.
Mary L.
Signing up was SO easy and was able to get a replacement 1099 for 2021 in about 20 minutes. Thank you, IRS, from a 3/4 century old widow!