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
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Virginia B.
I am 72 years old, working a full time job…As i filled in my tax info for my job, I was getting a refund…when I added my social security income, I ended up PAYING over $800…I really don’t think that is fair…Social Security is a benefit that I paid into for many years…it should NOT have to be claimed on taxes!!!
Dave W.
I agree Virginia! The rules put into place was not voted on my the average citizen like you and me. So sorry you have to pay the outrageous amount.
It is important to find out just how much money you can earn in your job before they cut into your benefits. I did this and it really helped. Go to the sea.gov website and search for “earnings before benefits are reduced” and it will explain everything.
Have a great day and God Bless!
Dave
Kent C.
Democrats introduced and passed this taxation while controlling both houses of congress.
Linda C.
I did the search you recommended, Dave, and I found this:
“Once you reach FRA, you no longer have an earnings limit”
FRA = Full Retirement Age
Do you have a link to different information?
Kate
Two different things here – 1.) income tax on all earnings and 2.) SSA limits on how much you can earn while receiving social security payments.
1.) You are taxed on all your income (wages, SSA, pensions, etc.) But if you stay below a certain limit (varies each year, info comes out in Nov usually) you may owe less or nothing. On the back side of your SSA 1099 is usually instructions to help you figure this.
2.) There’s a limit on how much you can earn and still receive your full Social Security retirement benefits while working. if not at FRA, SSA may withhold some of your benefit check. see:Benefits Planner: Retirement | Special Earnings Limit Rule | SSA
3.) Also watch out for possible state income tax – based on your federal.
AARP and several groups offer help for all this. Take a deep breath! Stay Safe
Jack L.
I agree, we paid into the system and now we are taxed on those benefits. This year 2/3s of my Social Security Income was taxed. Prior to the Reagan administration, SSI was not taxed. But they really did a number on seniors when they added the SSI income tax and made it difficult to deduct medical expenses…
Mr J.
DAMN Ronald Reagan!!
finger
And Al Gore cast the final vote
to tax social security up to 85% of benefits in 1993, Clinton signed it into law. Look it up.
Kent C.
Yes Reagan was President but, the Democrats controlled both houses of congress and voted this into law. Actually I believe Joe Biden voted for this tax at the time. Remember he’s very old.
debra
The administration is in the process of increasing taxes on retirement accounts.
Roe P.
Debra…. but didn’t Joe say no one who makes LESS than $400K will have their taxes increased? Oh right… I forgot….. that was a lie. And he and his administration/press secretary continue to lie like a rug. Our country is being run by a liar and plagiarist. We have the worst administration in the history of our country (definitely in my lifetime).
Cathy m.
While you complain about paying taxes, the people of Ukraine are fighting to keep their democracy and freedom. And I am sure they would gladly pay taxes rather than to fight Putin and his Russian army. If Putin continues, you won’t have to worry about taxes.Read your world history, it took one man, Hilter to start World War II.
Concerned A.
I AGREE 100%. WE GET WHAT WE PAID INTO FOR ALL OUR LIFE. TAXED ON THE MONEY TAKEN OUT THEN WHEN WE RETIRE SS TAXES US AGAIN. NOT RIGHT!!!
Kent C.
The Democrats introduced this taxation more than one time, passed the bill and as time went by they increased it into what it is today.
Judy S.
Rep Tom Massie (R-Ky) has drafted a bill to remove the taxing of SSA benefits. Write to your congressman or woman and urge them to support his bill. He is a go-to politician who could use some support on this.
Jose
Remember you paid in 6.25 % your employer paid in 6.25% . Unless you were self employer you only paid in half of the benefit you are recieving.
Les
Self employed sole proprietor pays both the employer and employee portions. Twice what is paid by salaried employees.
Dave H.
the money was taxed before the took it from you , them they tax it again when they give it back
this was not the way social security was originally done. changes happened over time when they needed more money to buy votes
Dennis
Sorry, all of my and my wife’s SS benefits go to taxes………like 100% is taken back. No one over 70 should be paying taxes……including the Oracle of Omaha.
MBR2000
Maybe your joint tax bill is equal to your wife’s SSI, but no more than 85% of her SSI income is taxed, and the maximum tax rate for 2021 is 37%. So, 37% x 85% = 31.45%, which is the absolute max she would be taxed on her SSI income. Google “2021 Federal Tax brackets” for more information.
susano
I don’t think that’s right, Virginia. If you’re over 65, you can work and not be taxed on SS benefits. Check into it with an accountant.
Curtis C.
Susano- sorry, but SS Retirement can be subject to income tax. Up to 85% of Social Security benefits are taxable for an individual with a combined gross income of at least $34,000 or a couple filing jointly with a combined gross income of at least $44,000. SS will not withold taxes throughout the year unless you request it.
Dot
I agree it’s not right. I wrote my Crongressman about how to get this voted on again. I got a letter back that had nothing to do with my inquiry. I thought this country USED to try to take care of seniors. I have worked since I was 14 years old and now at 72 they don’t seem to care about us anymore. I have to pay taxes every year because of my SSA. I have had it figured without my SSA and I would get a very small refund if not for the SSA. If anyone knows what to do to get it changed please let us know.
MBR2000
Letters to members of Congress do no good at all. Their canned responses are based on certain “key words” in the letters you send them. You would have to phone your representative’s office to have any chance at all of being heard. That or donate a huge amount to his or her campaign fund. Keep in mind the #1 item on just about any politician’s agenda is getting re-elected, which allows them to become wealthy while claiming to be a public servant. Sad, but true.
Tim B.
Dear Ms. Bowen, I understand your concern and there are several inflammatory replies to your posting. There is one thing you must understand – when you file for Social Security benefits, they do NOT automatically deduct federal or state income taxes from your payment. You have to request, fill out, and submit a W-4 form to have taxes withheld. I know it sounds cockeyed, but if your only source of income was your social security, you would not pay taxes. However, if you have earned income, or interest/dividend income, or capital gains, up to 85% of your social security may become taxable. It may be in your best interest to call up Social Security and talk to an actual person – everyone I have ever dealt with has been very courteous and helpful. But the bottom line is – your other income added to your social security income created this situation, and if you don’t correct it, you will likely be in the same position next year. Be well, sister, and good luck!
MBR2000
Tim, well said! And, yes, those Social Security folks are very helpful.
CMecham
You usually aren’t allowed to work & draw SSA payments. There is a limit as to how much someone could earn & still qualify for Retirement benefits! If you are working full time, you are not really retired…and if you are not disabled, then you shouldn’t receive SSDI benefits, no?
LMF
No.
MBR2000
Folks, I suggest you spend some time at SSA.gov, or google the topic you’re interested in. There’s a wealth of info out there.
For example, this is from SSA.gov:
“When you reach full retirement age:
Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn.
We will recalculate your benefit amount to give you credit for the months we reduced or withheld benefits due to your excess earnings.”
Twice i.
Quit working your only allowed to make so much money and draw ss . It’s simple then your ss isn’t taxes
LynnB
Once you reach full retirement age — which should be 70, but yours may be lower — your SS benefits are not taxed no matter how much you make from your employment. It sounds like you made a mistake in how you reported the SS benefit on your taxes. I’d look at your return again if I were you.
Susan G.
We pay taxes on our wages, then we pay taxes to spend our money on our purchases, then we pay income taxes on our money they already taxed and property taxes after we already paid sales tax on the property. Then we have to pay taxes on our Social Security payments! It’s a wonder there is anything left to get! Stop paying off student loans, paying for crack pipes, paying for illegals medical insurance, housing and food stamps (let them come in the legal way if they want to come in) and raise the social security wages for those that have worked for it and veteran benefits for those who have put their lives on the line for our Freedom. That’s about all I have to say about that… Proud American *but wanting a new President*
Dave W.
Amen Susan!!
Loraine K.
I agree with this person. I have a friend that receives 2200.00 in SSI every month (I get 200.00 less than her). She never has to report or pay any taxes on any of her income. Where I, due to getting a small pension, have to pay taxes on my SSI just because the combined (my SSI & pension) take me over the 25,000.00 dollars earned. Does that make since to anybody?????
Viki
Are absolutely sure? That’s an incredible amount of money for SSI – which means Welfare.
Terri
It is not welfare. Workers pay into Social Security, and unless they live a very long time, probably won’t get back the amount they paid in.
Viki
According to ssa.gov “Effective January 1, 2021 the Federal benefit rate for SSI is $794 for an individual and $1,191 for a couple.”
[If they move to CA and are a “disabled” immigrant, they get at least “$1,040.21 for an individual and $1,765.64 for a couple” even if they just arrived here, not counting their many other subsidies.]
MBR2000
Viki, I don’t know what the $794 and $1,191 numbers represent, but here are the actual numbers for 2021 from investopedia.com:
The average Social Security retirement benefit is $1,563.82 per month, according to the Social Security Administration (SSA). The maximum is $3,240 per month for those who start collecting at Full Retirement Age and were high earners for 35 years.
And to anyone who calls this “welfare”, many of us would be making significantly more per month had we been allowed to invest our SSA withholdings into a simple S&P 500 Index fund.
Viki
Lorraine, if you receive $2000 per month, “(I get 200.00 less than her)” and it’s SSI, that’s an amazing amount of Welfare. I get FAR less in regular wage-based SSA.
Terri
Viki, Lorraine gets more SSI because she had a higher salary than you, and therefore paid more into social security over her lifetime.
Audrey
SSI is a Federally funded NEEDS based program for those disabled and the cap is way lower than $2,000 in Ohio
Brian M.
If I went to my full retirement age, I would get $2465 a month.
I think you are talking about SSDisabilityI.
Everyone needs to tri to get their acronyms straight.
CMecham
Maybe it’s Workmen’s Comp? Anyways, if you haven’t paid taxes on the money you have earned, you usually will have to pay INCOME TAXES! Taxes you pay on items you buy, is a State sales tax. You do not pay taxes twice on State or Federal income taxes! I don’t get that one.
janb
These things have been going for several years and are not the the doings of just one President. Calling for a new one doesn’t alter what has been from the past.
Bfj
Totally agree with Dave W.
Steve C.
Absolutely correct Susan!
Linda L.
Susan, You hit every point right on the head!!!
We must have a President & staff that stops paying for everyone who knows how to play our system & countries that don’t support us, and then taxing it’s citizens who play by the rules, to fund their programs that have put us trillions in debt. This is just plain common sense!
Greg W.
All you right wing folks, let’s not forget that it was Trump who put us trillions in debt.
Uness
Greg … Just how many Trillions of dollars do you think Biden is getting us into?
Terri
Agree with you, Greg. Trump administration added more to debt/deficit than any prior president.
Puttintain
And how do you like the prices you are paying now for everything under Biden sure hope you are suffering?
Greg W.
I should also say that social security is just a government 401K. It’s all pre-tax contributions that are taxed when they dole it out. I pay no state taxes on my SSI. Virginia B. should have taxes taken out of her SSI to prevent a tax surprise.
Co C.
Here is the link of President Ragam’s state address about social security
https://www.ssa.gov/history/reaganstmts.html#09241981
This him explaining how social security will go bankrupt and what he proposes to fix it. It took about 2 years for the bill to be passed and it was approved by both parties and not just Joe Biden.
Marjorie
Amen, Susan!!!!
You are so right!
Carl
Undocumented immigrants, including DACA holders, are INELIGIBLE to receive most federal public benefits including SNAP, Medicaid, SSI, and TANF. They are in eligible for healthcare subsidies through the affordable care act and are prohibited from purchasing unsubsidized health coverage on the ACA exchanges. I have no idea where that idea got lodged in your head but it is untrue and just a small amount of research would’ve proven it.
Human
People who are determined to be haters are going to be haters. They won’t research anything that doesn’t support their hate. But they WILL put on their Sunday best and go to church where they will pretend to be just like Jesus.
I wonder what He thinks!
Ray W.
What new policy did our previous president enact to solve this problem, none.
Susan A.
Are you ever correct! And let’s stop letting people overrun our borders and then expect the rest of us will take care of them. Our grandparents didn’t get hand-outs, they had to work hard or rely on other relatives already here and working.
And if a liberal disagrees, I’d ask them: how many illegals are you willing to take into your house and support?
Bobbi P.
Amen, from Virginia
Keith M.
Now that many of you have attacked not only the sitting individual in the executive office but many of his predecessors without a hint as to how to correct the situation. This has never been a good practice. What is a viable solution to the problem? Identify the situation, formulate a solution, plan a strategy, and take action. That is how problems get fixed, not by slothful degradation for self-aggrandizement!
Tim U.
There is a principle, which if followed, will keep a person in everlasting ignorance. That principle is; “Contempt prior to investigation.”
On the other hand, if you enjoy your anxiety and resultant anger, you will never run out of things to yak about. You are a marathon runner with one foot nailed to the ground.
DonnaR
I have been waiting on my tax refund for 45 days. I received a letter yesterday from IRS saying I need to send ‘proof’ of the federal tax withholding taxes I reported on my 1040. After 5 hours on hold with IRS I was able to get someone to tell me that what I show as Fed tax withholding from SSA-1099 does not match their records! They added my W-2 tax withholding to my SSA tax withholding in error. now I will probably need to wait another 6-8 weeks for my refund (per them!)
Bob t.
The American Working Class always pays for everything.
We (the workers) are the only “producers” of wealth (true value) in this country.
EVERYONE else reaps the benefits of our productivity.
The wealthiest Americans and corporations have been allowed to “rig the game” in their own favor.
The only protection against tyranny levied upon us by the billionaires and corporations is a much fairer tax schedule.
Their ability to dominate our financial freedom comes from their “right” to “lobby” OUR representatives with large sums of money.
So, keep voting for people who believe that corporations are “people” and money is “free speech” and our children will be far worse off than we are now…. OR, NOT!
DonD
Worked all my life, now I get to be even deeper in poverty than I have lived for the past 60 years.
That’s amerika now, I guess.
TLindsey
I don’t know why anyone is paying taxes this year. I do not support allowing ILLEGAL aliens to even enter this country and I refuse to support them. The government takes our hard earned money and blows it. Now they want to supply crack pipes to druggies. NO! They want us to pay for abortions. Again, NO!
Dee
Shut up.
Kay
Thank you, Dee: fully agree. Whiners gotta whine I guess, but not here, please.
Mike d.
I completely agree with you.
L.Brown
Why don’t Republicans introduce legislation for immigration reform? Ask your representative why they can give $10 billion in aid to the Ukraine but can’t give Americans Healthcare.
Judith N.
Good question. Put money into facilitating the process to let people in legally. And tax them. And let them buy houses and spend money. And get the jobs that are so avaliable now, because no one wants to work m
camille v.
OMG that’s terrible what u said!!!!!
Leo B.
…or why Dems want to secure Ukraine’s border but not ours.
Kim f.
Someone needs to do the dirty jobs that us spoiled Americans refused to do without immigrants this wouldn’t even be a nation
Displaced a.
BULL
Carl
Absolutely! And isn’t it funny that people seem to have forgotten that every single one of us had family that immigrated here? Unless someone is Native American. Those are the only natural born Americans
NJ
No one is against immigrants. Just illegal border crossers. that are terrorizing out neighborhoods and kidnapping our children and pets.
Veronica L.
I agree with you; Amen!
Peter K.
This is not a Qanon nonsense site, for that you go to Fox News !!!
steve.r
love your reply bro
steve
your not to smart i see.
Helen K.
Why aren’t people on Medicare getting the 8 free Covid test that Biden promised for EVERY American, also people on Medicaid don’t seem to be eligible.
What about the FREE N95 masks that were also promised.
Older Americans are still the most at risk for bad Covid outcomes and we have been forgotten!
The idea that our Social Security income is taxed is ludicrous, we already paid taxes on that money when we were working.
Sandy F.
I received both.
Phyllis
Look on the back of the box. MADE IN CHINA
First China gave us the Covid. Now we are PAYING them for the tests!
Mr S.
Hi Helen, I heard on the news yesterday that the government has 500 Million covid-19 home tests available for people that want them. Maybe contact your family doctor or local hospital, or a senior center to see how you can get them. I’m not a doctor or Social security employee. Just a bloke that saw your post and want to help.
Barb
I am on Medicare and I received both tests and masks. You have to ask for them online
camille v.
If u applied for them u will get them. I waited 4wks but got them last week
Lori A.
I got mine.
CraigR
You have to supply a little effort on your part by applying for them. It by address Not your medical benefits or lack of.
Jean C.
I’m eligible and getting them and I am on Medicare. I think your information is incorrect.
Lawana H.
You have to go on the website and order. I saw the notice on the ssa.gov website and it will give you instructions. I ordered the test and received them in just a few days
Lorraine k.
I am outraged that i have to file incorrect taxes on SOCIAL SECURITY DISABILITY. The IRS informed me 3 years ago via a THREATENING BILL. I thought i was poor ENOUGH, so the IRS takes the equivalent of one monthly ssd check; in addition, i didn’t even bother to claim my meager retirement benefit because THE IRS will just evaporate it. I’m baffled how out government does this to us and WEALTHY PEOPLE aren’t paying federal taxes etc. HORRIBLE. DISGRACEFUL.
Patricia S.
“Wealthy people don’t pay federal taxes”?! That is an untrue statement.
Deborah
They absolutely don’t pay enough and have tons of tax credit’s she is right
Dan
Well, let’s talk semantics. Low to lower middle class folk pay the taxes they owe, period. Wealthy folk have many ways to reduce their taxable income. While their rates are higher, they can shelter huge amounts of income. They do in fact pay federal taxes. The issue is they are not taxed on all the income they receive because of tax shelters and loop holes. Enough said, the playing field is not level.
Bobby
Unless it is Trump. Pd $700 for 2 years out of 10. How much have you paid in taxes in the past 10 years?
TLindsey
Trump pays his taxes in advance. That $700 was what was left owing. Do some research to avoid looking stupid.
Dee
I bet you’re wrong and if you’re taking Trump’s word for then YOU’RE the one who’s stupid, stupid.
steve.r
your the stupid one trump is a 100% crook/grifter!
NJ
Here we go again.
Mike d.
If Trump wasn’t paying taxes dont you think the Biden adm would of shown us the facts by now. All the dems say is they have “reason to believe”. Just like Schlomo Joe got more votes than any presidential candidate in history, 81 million. Trump won. Biden can even tie his own shoes.
Mae C.
How about breaking down Bidens Tax payments .
Mike d.
Wish I was irresponsible and had kids I can’t afford to raise so I could get $300/month for each kid.
camille v.
big mistake not claiming your retirement benefits.
Alan P.
Good information but why is this being provided only now 1st week of March instead of in January? Some have already filed their taxes.
Ernie
WE have been hoodwinked…
livefreenow.org
will answer that question
Paulcr
If you have already filed and any of these things apply to you, you can file an amended return for up to 3 years.
Gay A.
I agree a retiree should not have to pay social security when we were already taxed on income when we paid into the system. Also the Cadillac tax on people who have pensions from state agencies are being penalized by taking 1/2 if not more of social security for monies that where earned while working for industry outside of government. Maybe our legislators should get huge tax’s on other income while in office see how they like it.