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
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Stacy
Please support getting HR5050 out of committee.
https://www.congress.gov/bill/117th-congress/house-bill/5050?q=%7B%22search%22%3A%5B%22HR+5050%22%2C%22HR%22%2C%225050%22%5D%7D&s=1&r=1
Peg S.
Why is social security taxed and not ssi?
A.C.
Hi, Peg. The Supplemental Security Income (SSI) program is a needs-based program that pays benefits to disabled adults and children who have limited income and resources. SSI benefits also are payable to people 65 and older without disabilities, who meet the financial limits. Social Security Disability Insurance (SSDI) benefits, on the other hand, are based on earnings and are not subject to income and resource limits. For more information on the difference between Social Security disability and SSI, check out our Frequently Asked Questions. We hope this helps.
NZed
So, as usual, married couples without kids and those of us who pay 80+% of ALL federal income taxes, end up paying AGAIN for these EXTRAORDINARY benefits for those that pay little or NO federal income tax! I am sick and tired of hearing politicians say that moderate and upper income EARNERS are NOT paying their FAIR share! News Flash! We pay WAY MORE than our “FAIR” share!!! WAKE UP!!!
Joseph P.
I agree with you. And if people think the rich and ultra rich are going to have their taxes increased then they have their head in the sand. I am 71 years old and I have heard that from every politician that has run for president or congress or the senate. They are Not going to raise the taxes on the people who are making the politicians rich. Wake up AMERICA.
Kiflyn B.
I do get Social Security
R. E.
Do RE
Kathy H.
I think once we receive retirement it’s time to stop being taxed on what we own! We did our time without a lot of the tax credits people get today that we didn’t get when we had children at home! Ridiculous
Kurt
Kathy-
Couldn’t agree more. I just retired at 67, and my wife & I have never utilized an entitlement of any kind. As if it wasn’t bad enough to get whacked on my early retirement plan distributions- used to buy our current home, then our SS payments are whacked via the IRMA adjustments. You can’t win!! Arghh…
Dearbonks
Do you at 71 years old make $400,000 annually ? If not your fine.
Michael G.
I fully agree.
Kiflyn B.
I do get Social Security
Mike
Your point that you do get SS?
Tom m.
Agreed
Jeff B.
Eliminate the cap on Social Security contributions so that all earners pay in regardless of income. Also, raise the retirement ages to 65 for reduced benefit, 70 for full benefit and 75 for enhanced benefit. I’m 71 and still working since you can not live on SS alone and few people have pensions or sufficient IRA or 401K balances to rely on.
GLORIA B.
I agree with you. If the cap were removed there would be plenty of money in the fund instead of it running out of funds in a few years. Also the death benefit could be raised to a more realistic amount rather than $255. That’s an insult.
Christine
And you aren’t guaranteed to get the death benefit, I didn’t get it just because my husband and I weren’t living together due to me taking care of his mother in her own home, which was 2 houses away from my husband.
Farhad
That is a very bad idea.
Mike
Raising retirement age to 68, using the top 38 yrs of earnings vs the current 35 yrs and eliminating the cap on earnings would make SS pretty much financially solvent, vs taking a 20%+ cut in about 12 yrs ( or less)
Hugh D.
Well said. When will somebody point out that in the U.S. a small percentage of people are paying the majority of income taxes. How about affirmative action for a minority of high tax payers. Give them a xmas bonus for paying all those taxes that support the riche and the poor but not the middle income people with productive jobs.
As for taxing the rich, if that ever does happen it will just trickle down to burden the un-rich, because the rich own the corporations that can raise prices to cover the owners’ losses in taxes.
No matter whose taxes the government raises, it always ends up with all consumers paying for it, which means everyone who lives here.
Grace
I and my employer paid into SS from age 16 to 55 yrs old. So you are not paying for me or anyone else. If we worked all our life, that’s why SS was created. If, government had not stolen from this fund there would be plenty of money.
Disappointed
Thank you for saying that! People are so ignorant and lack compassion. That person really is on my nerves.
Eliza C.
THANK YOU.
Disappointed i.
So because I’m disabled with young children and I can’t work right now due to sever illness means I should get less help than someone who is able to make a decent living feed their family and not worry about becoming homeless because rent has gone up several hundred dollars???? Just trying to see what point you are making??
KarenO
I, and I’m sure most of the taxpayers, do not begrudge any handicapped person getting help. It’s the people who can but choose not to work, believing they’re entitled and expecting the government (aka the Taxpayers) to pay their rent, buy their groceries, and foot their medical bills. Everyone deserves a hand up but not a handout. I pray your health improves quickly.
M. C.
Amen to that. I am also so tired of paying more Taxes. We pay more than our share and get nothing in return. SMH…..
KarenO
You are absolutely correct.
Open y.
Cry much!!! Most of the money you pay in taxes goes everywhere else but for SSI or SSDI or SS for others. These folks get 800 or a little more to live off of each month. These people better have family’s or married or something. Because why you run around in your 60 or 70 thousand car playing golf. These poor people can’t even afford to live alone and be able to pay there bills. Or live in some slumbloards place charging them 500 bucks a month or more. And them not have enough to pay there light bill or get them some food for the month guy. So you want to cry about having to pay more taxes talk to the government with there over spending on oh I don’t know. How about paying Russia for oil each day and everything it cost to get to us. And close a pipe line coming out of Canada and would of made us self-depindent on oil. And not make all these other country richer. Or how about Biden administration letting all these illegals into the country. Loading them up on busses and giving them $7500 checks of the tax payers money. Goes that is ok with you. That way this administration has illegals stacking the vote.
Kim
Exactly! I receive SSDI and I worked since I was 15 to receive my credits to earn my disability. I paid plenty into the system. It should not matter how much my husband makes, my money shouldn’t be taxed 85%. I also would much rather be working than be on disability. I’d rather depend on myself to take care of me whether I’ve paid into the system or not.
Jim k.
People it’s only money thank God we live in United States of America not in a dictatorship or a country that is under attack with many dead with no food or shelter. social security is for the masses in a attempt to level the money field . We need more Billionaires yes???
CPA M.
Geeze people! Ask a tax person or read the tax code. Each person, each year is a different situation.
And remember, the Gov’t is gonna get someone’s money one way or the other, regardless of politicalness.
Bob F.
The tax code needs to be simplified. Citizens are not lawyers.
LJW
The tax code certainly needs to be changed to eliminate some of the allowable corporate deductions and loopholes, but no amount of change will ever stop the greed that pushes corporate America to generate record profits. The greedy know how to use democracy to their advantage. You can forget the Keynes theory of economics too since business either lies about the condition of the economy, or they manipulate it to their advantage. Their greed will never be overcome.
Knick K.
LJW –
You’ve been listening to too many left-leaning college professors and talking heads.
“Greed” is not what pushes corporations to seek record profits, shareholders do.
The shareholders of a public company are essentially giving that company a loan (by buying their stock), and they do so based on the risky premise that they’ll get a return on that “loan”, since there is no guarantee that the company will be profitable at all, or will not go out of business, thus making the stock worthless, and costing the investor all of the money they invested.
Profits are what allows the shareholder to get the return on that risk, via dividends and increased share price.
If management does not operate the company in a way that the shareholders feel produces enough profit, they get fired – by the Board of Directors, who work for the shareholders, and who will gladly find someone else to deliver greater profits.
Your comment shows a lack of understanding of risk, capital markets, and the premise of the free enterprise system, which, despite your disdain, is the best system out there.
Time to do some homework.
KRC
The “lack of understanding” is clearly yours. The purchase of stocks is not, under any view, a “loan.” It is a purchase of an asset with a hoped-for rate of return. The corporation never has to pay back the shareholder for the purchase. If a shareholder is disappointed in that return, s/he sells shares and invests elsewhere. If the S/H is dissatisfied in a reasonable rate of return and demands more, that probably is the definition of “greed.”
Real p.
You sound like a Trump University dropout. Corporate greed is solely responsible for the ridiculously high compensation packages received by senior management in almost all corporations. investors are not seeking massive profits they are seeking a balanced profitable company to grow over time along with the value of their stock.
J.Thomad
Your patience is outshines by your politeness.
How kind you must be…in another world
Robert G.
Did you mean to say outshined?
JulieP
it’s really funny to me when i think of the “tax credits” and such from the government meant to help the middle class, but in all reality, the shutting down of the pipelines and natural gas supplies, has created an even larger problem. the cost of gas alone is killing most people in their pocketbooks. we need to be able to get to work, and with the increase of fuel, etc, some people just can’t even afford to drive any more. when is it going to stop?
Kiflyn B.
I do get Social Security sorry about that
My phone is screwed up
Hugh D.
To CPA M
Sometimes I wonder if arguing over taxes is all a bad joke anyway. I get more and more of a feeling that as long as the U.S. dollar is the “reserve currency” of the world, the government can burn trillion-dollar bills on Capital Hill .
It actually spreads our financial deficits to all the world because they all have their savings invested in U.S. dollars. Most of them anyway, enough to validate my point. For instance, the biggest holder of U.S. Treasury Bills is Communist China.
Terhize
For information: SSI Benefit are only given to US Citizens 65+ and above. An ordinary people living in the US or even a green card holder are not qualified to receive Federal/State benefits. Unless they work and contribute part of their wages to SSA.
LMF
Not so. One can be 60 and receive early. One can also be well under their 60s and receive for disability. But yes, no one gets SS. benefits until they have paid into the system through work.
To other commenters, there seems to be a misunderstanding about how Social Security works, though I suspect, by the tone of your comments, it’s just willful ignorance.
Fact: non-citizens who work in the US are required to pay into our Social Security system. For that, they are just as entitled as Americans are to receive the benefits they paid for. It’s not political, it’s a law and it’s common sense.
Darlene L.
I did not get my social security check I was wondering way
Roger
Probably not the best way to find out in a public forum.
A.C.
Hi, Darlene. Thanks for visiting our blog. 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.
Jon. P.
SSI benefits are given to developmentally disabled persons regardless of age. Prior to age 18, qualification is based on family income and at 18 age, if disabled since birth, they can receive a portion of SSI benefit depending on contributions to living expenses from parents, etc. At least this was the way it was when my son was born.
People a.
Yes that is true. I’ve been disabled all my life but I also got an education and worked as a dental assistant until I got sick again. Been on social security since I was 21. Except for a few times when I did try to go back to work. I have 2 kids my rent increased $200 this year making it so I might be homeless soon.
Christine H.
Yeah ss approved my son for ssi, then my husband died and my son who has aspbergers was disabled at birth and had to have special exceptions with his schooling since age 5 starting in kindergarten. BUT SS agreed my son was disabled but not before the age of 23. They didn’t want my son to receive the 75% of my husband’s disability cause that is more money then his ssi. If a child has all his life been developmentally delayed common sense SS….. obviously he was stricken with this specific condition it didn’t happen when he was 23 years old get real. He should have automaticly been transfered over to ssdi since the judge found that my son was disabled but ss decided he was disabled at 23 and not before. How stupid the administration is, his condition itself doesn’t manifest on its own it derives from birth. Oh how frustrating when ss became a medical expert. Geez, I am sorry I rambled on it’s just so remarkable how they make decisions over there.
Bob F.
We have many people who are not citizens working in the cash society not paying any taxes. There are a lot of check cashing places for their bosses to cash their customers checks and then pay their helpers in cash. In fact this is a good business for government employees. This has been going on for years look at home building in Texas and border states among others and lawn and landscaping companies – mostly non tax paying.
Penny
You are so right Bob. My friend who lives in public housing receives little in SSI. She is almost 80 yrs. old. The whole apartment complex is section 8 housing. Most tenants are first generation Americans from 30 to 60 years old. They supposedly don’t work, yet every week day morning the parking lot empties out as these people go to their under the table paid jobs. They receive food stamps, free medical care and pay almost nothing for housing. Around supper time the parking lot fills up again as they return from work. Week after week. They pay no taxes. They live there for years. They just take and take and take. Americans are so foolish for ever voting for a democrat and many of the republicans too. Educate yourselves.
Charlie J.
It is NOT common sense. Why can a non-citizen contribute for a few years and then collect?? And where does all the money go that people have paid in but never receive because they die prior to qualifying for benefits??
Stacy
Yes it is common sense but common sense isn’t so common anymore. A non citizen who has a work visa or work authorization will get a social security number and pay taxes and into social security on their wages. So they are paying into the system. As to your point of them “paying into it for a few years and collect”. That’s no different than a citizen doing the same thing but in both cases the amount they paid in determines the amount they get back.
Social security is a big pot everyone pays into. Some people live long enough that they collect for longer than they actually worked and some people die before collecting at all. That’s the way life works. The social security taxes being paid by workers now are contributing to those on SSI now. When this generation gets old enough to retire the new working generation will be supplementing those on social security. That’s why they are predicting the collapse of Social security. People are having less kids so the next generations workforce will be smaller and there won’t be enough paid in to cover what’s being paid out.
Eddie W.
Simple solution to ending (or curtailing) SS benefits. I believe the current cap is around $200
thousand. If you make more than that yearly, you don’t pay into SS above $200K. For all those earners making above that amount, tax them at the rate of 1 tenth of one percent of everything above $200K. It’s such a small amount, the recipient won’t even know it’s gone!
Christine H.
Think it goes into some kind of slush fund, there should be an accounting done just for those scenarios. Bet it’s a lot of money 💰.
RG
Good job!
Debra S.
I don’t do taxes, because that is my only income
fran
me too. I took it to H & R Block and they said I dont have to file. Im glad with that. but biden will find a way to get some, I am sure. lol had to throw that in there. no offense for those who are for biden.
John
No offense? Biden is your president. Deal with it.
Charlie J.
Biden is an idiot. We all have to deal with that.
JulieP
Why? you didn’t deal when Trump was Pres.
RG
Let’s go Brandon right?
Stacy
Julie P Right, they stormed the Capitol and filed multiple court cases trying to overturn the election, that were all thrown out even in the Court they stacked with 3 handpicked justices. O wait, that was someone else….
Joe M.
The Congress passes the laws that specify who pays what. The President has little to do with taxes, but the Executive branch does spend the funds authorized by Congress.
Stacy
Why even mention Biden? Why be divisive? All politicians are the same. It doesn’t matter if there is an R or a D next to their name. If you really believe ANY of them are for you I’ve got some beachfront property in South Dakota to sell you
Bob X.
Stacy, will that beachfront property be overlooking Mt. Rushmore???
Nancy D.
Perhaps term limits should be enacted!
Barbara W.
Didn’t know this was a forum for griping about President Joe Biden!!?? Let’s stick to SS discussion and leave politics out of it.
I DO agree with making earners over $200K pay into SS – that’s a big bonus for them, in addition to the largesse they get to live on.
J. T.
Your handing false information. I qualified at 44 but didn’t start the process until 52 and finally got it at 56.
RG
You’re handing not your handing!
Tavia
SSI suplimental security income are given to those under 65 with a disability
Dave
I am under 65 with a disability and I never got ssi , I got ssdi , because I worked and paid into the system before becoming disabled, those who never worked or paid in too little get ssi..
Mark M.
Early retirement is possible. SS benefits are NOT limited to 65+. Each situation is different. Call or chat with a SS rep on their web site, they were very helpful and knowledgeable when I was about to retire. I have friends who started receiving benefit at 62 years of age. Inform yourself before deciding on what to do. If you can wait later than 65, and your working, your benefits will be higher. Check it out first.
Elizabeth R.
Not so I know of a lot of people never work one day in their lives and is getting SSI ok. People think they don’t but I want to know how come they can get money ??
Gotu
Thank you for this helpful article.Great Information
Rickyboy
At one time SS benefits were not taxed. Then a certain senator pushed a bill through where we would pay taxes on 50% of our SS benefits. A few years later he led the charge to raise the percentage of SS benefits to be taxed! Here these politician who vow to protect our SS benefits go behind our backs and start taxing them. Do you know who led the charge? Of course you do, it’s Joe. So he did accomplish something after 40 years in the Senate!
Jeff P.
Always nice when people make things up to sound important and push their agenda rather than checking the easily available facts. The facts are:
The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote.
The basic rule put in place was that up to 50% of Social Security benefits could be added to taxable income, if the taxpayer’s total income exceeded certain thresholds.
The taxation of benefits was a proposal which came from the Greenspan Commission appointed by President Reagan and chaired by Alan Greenspan (who went on to later become the Chairman of the Federal Reserve).
Then: In 1993, legislation was enacted which had the effect of increasing the tax put in place under the 1983 law. It raised from 50% to 85% the portion of Social Security benefits subject to taxation; but the increased percentage only applied to “higher income” beneficiaries. Beneficiaries of modest incomes might still be subject to the 50% rate, or to no taxation at all, depending on their overall taxable income.
This change in the tax rate was one provision in a massive Omnibus Budget Reconciliation Act (OBRA) passed that year. The OBRA 1993 legislation was deadlocked in the Senate on a tie vote of 50-50 and Vice President Al Gore cast the deciding vote in favor of passage. President Clinton signed the bill into law on August 10, 1993.
Look it up Rickyboy. Of course that doesn’t fit your agenda.
David
Not true! Read the blog, SS is not taxed!
Ly
You are so incorrect! I know because it has affected by taxes.
Ly
my taxes
Steve T.
Of course you pay taxes on social security benefits! I’ve had to do it for years!
Roe P.
YOU ARE WRONG! I pay taxes on my social security. Why else do they take it out of my monthly payment? Duh! It is based on your total income as to what you pay. So don’t say you “don’t” pay it. When in fact some people do.
EagleSpirit
Thank You for clarifying that statement. I was just about to make that statement myself. You are correct. It depends on your over all income. I’m on SSDisability and I do not file taxes. But that is my only source of income.
A A.
Hey EagleSpirit… Is this Coach Eddie? This is Angie.. Please reply or send me or Bruce a message on FB.
Ada. N.
I am 76 years old. I don’t pay taxes on my S.S.
I have a small pension. There is a tax bracket of which I was not aware of. In 2016 I worked for 6 months and I paid taxes. I thought I was going to get some money back and my S,S would increase. Wrong !!!!
I had to pay around $3,500 more ” because my tax bracket changed” I was advised: from now on you can only make $1,700 per YEAR, before you pay taxes on your pension, so I didn’t work again until last year, but I stopped at around $1,650.
I checked with the IRS and was told that my 2021 tax bracket only allowed me to make $1,300 per YEAR before I they tax my pension again.
They increased my SS a little and most of it went to Medicare. I only received $40. So they add on SS but they take more on taxes. Practically I worked just to pay taxes so they could give my money to illegals.
I am at poverty level now, while the wealthy gets away with paying taxes. so unfair!!
MBR2000
Up to 85% of your social security income is taxable, depending on the combined total of social security + income from other sources, such as a Traditional IRA, pension, or job. However if that total is less than $25,000 for an individual or $32,000 for a couple filing jointly, no income tax is paid. Good article here: https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html
Pat B.
You are right. I know because I am taxed on 85% of my SS and have been for several years. I may not agree with this, but it is the law and I follow it. I personally don’t think withdrawals from IRAs should be included in the feds calculations but have not been able to convince enough people to get the law changed.
Dan L.
Where do you get your information? 85% of Social Security retirement benefits are subject to Federal Income Tax.
Pat B.
The information is in the federal tax booklet. There is a one page sheet that you fill out to determine the amount you will be taxed. It can add up to 85%.
Bob F.
I believe it was Bill Clinton who signed the tax social security bill but we had promises from both parties we would not tax soc sec. Remember politicians never found an income or money flow that they will not tax particularly liberals.
John T.
Depends on other income read the blog
Eric M.
Yes. It was Bill Clinton. The vote to tax SS benefits was split evenly in the U.S. Senate back in 1993. he tie breaking vote to tax the benefits came from the President of the Senate, Vice-President Al Gore. Democrats never met a tax they didn’t like.
Pat B.
SS is taxed up to 85% depending upon how much other income you have and that includes money taken from your IRA or 401K. I know this for a fact because 85% of my SS is taxable by the feds. The State of California does not tax SS.
Tom
Right but it’s not the “total” of your SS income that is taxed. If one is single and gets $25k+ a year in SS benefits, then they are taxed 85% on what is over the $25k, not the whole amount. In other words; If one gets $29k/year in SS benefits and they’re single, then they are taxed on only the $4k over the $25k. Married couples get taxed on totals over $32k/year.
MBR2000
I think there is some confusion about taxable vs. tax. No one is saying you could pay up to 85% tax on your Social Security Income! They are saying that up to 85% of the income is SUBJECT TO TAX.
Bobby J.
B.S. I am 70 years old and have paid income tax
part of my social security every year since I was
62!!
Raymond
Yes it is. I was taxed on 50 percent of my social security
And here’s another scenario. You decide to draw at 62 because of your health problems so you get penalized for drawing early. Let’s say that you made a good income and that income before you turned 62. So they withhold your payments because of the income before you turned 62. In the next year when you file your taxes. You are only allowed to make a certain amount of money so if you made more they will calculate how much and will penalize you
Glenna
As a new retiree I did not know to claim Federal taxes out of my SS check. After I combined it with my pension which did have taxes taken out, I ended up owing $4200 plus a penalty for under withholding. I was going to get a refund until my SS was added. Plus, I my SS is decreased because I have a state pension. I worked 21 full time years and 21 part time years in the private sector but I still get penalized. None of this seems fair to me.
Kim
Not true! My social security disability is taxed. It is based on the amount of your household income. Due to my household income, 85% of my money is taxed, which is ridiculous! I worked from the ages of 15-44 and became medically disabled, not by choice. Now, although I paid my fair share of social security tax, including the max allowable some years, I pay taxes on my SSDI due to my husband’s income. It shouldn’t matter about my husband’s income. Im my own individual person and paid my own taxes.
Also, if you begin receiving social security early and are still working, you must pay taxes on your social security. My mom was born in 1955 and she either had to be 66 years and 2 months or 66 years and 4 months before she could draw her social security and work, making an unlimited income, and not pay taxes on her social security. I may be wrong but I think it was 66 years and 4 months. For her, it was this past year so that’s how I’m aware of that situation.
Your w.
You are a liar. Try making a less obvious attempt. As a person who had been on Social Security for many years, only the amount over $18k/ year is taxed
Willful evil
TheVermontStooge
If Social security income is “not taxed” then why are Federal taxes taken out of each monthly check and then I have to declare the full amount as income on my federal 1040 tax form and my state forms and then my tax is based on that ? SS benefits crtainly are taxed and counted as income.
LISA B.
The amount taken out of your check, most likely for Medicare, not taxes.
Pat B.
I pay taxes on 85% of my SS and have been for several years because of the amount of other money I make (my retirement income, my IRA withdrawals, interest earned on investments, etc). There is a page in the feds tax booklet that you calculate the amount you must pay. This is for the feds, not the state. California does not tax SS, yet.
Claire
How rude!
MBR2000
“How rude” is right!
We need a site moderator here to delete comments like the one above made by “Your w.”
John T.
IT DEPENDS ON OTHER INCOME
Jessica
My husband is 45 and has been on social security disability since he was 30 due to having Crohn’s disease since we were in 7th grade. I have always included his unearned income (i.e. the amount from his yearly 1099 from the SSA) in the appropriate field, social security income. For years, none of it ever ended up being factored into our AGI because I (the working spouse) did not make enough yearly per the SSA 1099. Then I was given a raise and every year since, almost half of his “unearned social security disability income “, which by now, is almost more a month than my monthly pay is, is taxed. I am by no means not trying to start an argument or debate, I am just trying to understand how this is allowed to happen. He is on disability, his spouse gets a raise to bring more money home, and his disability money, which is unearned income, becomes taxable. It’s mind blowing to me. He worked from the time we were 15 years old until he was 30, had no choice in no longer being able to work, and lost his career due to a terrible disease. But he was also fortunate enough to be approved for disability and we are forever grateful for that. I just can’t grasp how he is then penalized at tax time every year because I got a raise. It’s just wrong. His unearned income becomes taxable. That makes no sense.
Jerry H.
So one senator can change the tax laws? It was a bi-partisan bill and was signed by President Reagan. Why do “you people” have to try to turn everything into a political attack?
Paul R.
It was nonpartisan legislation signed in to law by then president Ronald Reagan when his party had majority in both houses of congress. That’s the rest of the story.
Lynne
It was Ronald Reagan who taxed Social Security, not Joe Biden.
Jerryboy
Rickyboy, Did you even bother to see who pushed this plan. It was Republicans in congress and the bill was signed by Ronald Reagan. Thank them for having to pay taxes on some of your SS, not Joe!
John
Thank Reagan for your problems.
Jeff P.
I guess the danger to our free speech lies with the people who don’t value it. They could easily verify that what they are saying isn’t true, but they don’t bother because they believe their agenda is more important. Sort of like Putin. The Ukrainians value their freedoms. Maybe more of us need to do the same. When we fail to value our freedoms we jeopardize them.
Dave M.
A portion of SS benefits are taxed if you have enough income to trigger the tax. If I keep my IRA distribution at or below 20K, then we pay no tax on SS benefits paid to us. As long as we only have mortgage payments, property taxes, food and insurance it is manageable.
Dorothy L.
Viki, SSI is not welfare. It is for physically or mentally disabled individuals who cannot support themselves. Our government long ago set up this program to assist those who need assistance providing for themselves. Whatever else our government does which is unfair to the rest of us is another matter altogether.
Esther B.
Copied from above: “Noncitizens who live outside of the United States receive the SSA-1042S instead of the SSA-1099.”
Can someone please explain to me what entitles a non-citizen living outside of the U.S. to receive a social security benefits statement? Who would those people be?
Chris
Joe Biden voters
Becky
You are absolutely correct Chris.
Sandra
No…he’s actually not correct. Read on… (Richard’s and Sarah’s Response)
Sarah
Did you know before Reagan was in office, disabled and elderly did not pay taxes on ss income. Look that up in your funk & wagnall’s.
Now Tell me you’re an upper middle class complaining about your taxes while trolling disabled people.
Richard
Actually it’s green card workers who paid into social security payroll deductions and have retired and returned home
Gramma
Waaaaaa! Tucker wannabee.
Harry Z.
Thanks Joe!
L R.
People from across the border who come here to make a living, whose income is reported to the government, but cannot claim U.S. citizenship, THANKS to Trump.
O.F.L.
They can’t claim citizenship if they don’t qualify or if they don’t apply and meet requirements. President Trump added no new requirements. Please take your hate elsewhere.
Lumpy R.
…and I DO thank him for that…
Roe P.
You must be delirious!!! What till you see how many illegals get social security and more because of Joe’s open border policy. They are already getting benefits (using our tax dollars) and are being planted all across the US. They will be taking the jobs away from American citizens. Thanks Joe and Kamala (who is finally going to Europe!) LOL
Dave
Say Amen or Ouch! It’s mind boggling that so many people voted for someone as corrupt as Joe Biden. It is so embarrassing for any real American to now admit they are a Democrat.
John
STFU. You know nothing.
Elizabeth R.
And if they pay why shouldn’t they pay abs then they put that they have 1.5 kids so hardly no tax comes out pls.
Helen V.
I agree!
Raymond
People who live in a border city are able to work and they cross the border every day to work and go home. It is cheaper to live in Mexico and make more income than working in Mexico so they are making more money and keeping more because of their lower cost of living expenses
sherel S.
you got that right
Dennis
Happiness is a warm gun
Twice i.
Chris your an idiot
Sarah
Some folks born in the US retire and move to Canada(or any other country). If they marry or stay for the remainder of their life, they are still entitled to collect based on their earnings and credits it retirement. If someone is severely injured resulting in disability, and has to go live with a relative in another country, Because they became a citizen of another country, doesn’t mean they lose their benefit. If you worked and paid into Social Security, you can collect it.
Now. If you were born in us and worked off the books and never paid taxes on your income- those people do not get SS unless they individually paid into the system. Which they hardly ever do. Americans born here and try to not pay taxes- gets no forms for them, and no benefit for not paying in
Bruno D.
Most of these cases are NOT “non-citizens”.
Joe Biden voters or otherwise, the taxpaying citizens of this country pay for entitlements that several years ago would have been downright illegal……….and perhaps are illegal today.
Carl
Because they are working for an American company… and their taxes are taxed by that American company
Susan A.
Our completely screwed-up government.
paul n.
also had this Question pop up. WHO are THEY that allows them to collect SS Benefits.
Ben
Paul, whoever worked and paid taxes (Green Card holder/ U.S Citizen) is eligible to get SS benefits. It is THEIR money paid to the government! Make sense?
Freyja
Makes perfect sense Ben. To people with a conscience and math skills. Some appear to think their lack of these, is the fault of some President or the government, while they’re happy to be here commenting while they collect.
LMF
Exactly.
Lynne
I can’t believe the ignorant comments. It’s so easy to research this!
LMF
Exactly right.
Cal
March 05, 2022
Important message for all SSI recipients. You are now allowed to save up to $100,0000 in an ABLE account without having to repay the government from your monthly SSI check. Money Thais is in an ABLE checking account CAN’T be counted as a resource. Other programs like HUD, Medicaid, ect. are also prohibited from counting money in an ABLE account. Go to ABLENOW.com SSA.gov for more information about ABLE accounts.
C.Mecham
Maybe because the person had taxable income and needed to file for his return (if any). Do you think that it is your business how someone spends their money?
JahwneyDex
No, I don’t think it’s really anyone’s business how another person spends their money; but evidently the current administration does. Hence the effort to monitor any personal bank transaction over $600 by the IRS. Fortunately this was put on hold when Build Back Broker was defeated.
I for one do not want Senator Warren monitoring my or your banking transactions. Hell, after Elon paid the highest tax bill to the IRS, Liz still wasn’t satisfied with the taxes he paid.
LynnB
Musk may have paid the largest tax bill in history, but was it a fair percent of his income? Or did he hide a good portion of his income like rich folks are prone to do to avoid paying ALL the taxes they should be paying. Don’t confuse the bare dollar figure paid with the percentage of taxes due.
LMF
“Those people” would be people who paid into the Social Security system just like you did, which makes “those people” just as eligible as you are to receive SS bebefits.
LynnB
“Those people” are people that worked here and paid into the SS system and paid enough to qualify for benefits. You don’t have to be a citizen and you don’t have to remain living in the U.S. in order to collect the SS benefit that you qualified for.
Ray.
There are many Retired USA Citizens that live in the city of Allende, Guanajuato Mexico, it’s actually more than 85% of US citizens of total people living there.
Raymond
Yes. My wife. We have been married for about 20 years she had a green card and worked in a factory for a few weeks and then she worked as a waitress and now we are retired and living overseas. Her green card is expired and she is 60 and I am 63. She will get my benefits if I die. She is a non citizen and we are living in Thailand