Tax Season: What To Know If You Get Social Security or Supplemental Security Income
Reading Time: 4 MinutesLast Updated: November 2, 2023
It’s tax season once again. It’s important to read this blog even if your earnings or benefits don’t require you to file a federal tax return. You may be entitled to special tax credits that can mean extra cash to help you with expenses. These tax credits are available even if you receive Supplemental Security Income (SSI) and don’t normally file a tax return.
The Child Tax Credit
What is the Child Tax Credit (CTC)?
The CTC is a tax benefit, expanded in March 2021, that helps families who are raising children. You can claim the CTC for any qualifying child even if you don’t usually file a federal tax return. You can get up to $3,600 per qualifying child under age 6, and up to $3,000 for each qualifying child age 6 – 17. These ages are determined as of December 31, 2021.
Am I eligible for the CTC if I get Social Security or SSI?
Yes, if you meet the qualifying rules of the CTC. You can claim this credit from the Internal Revenue Service (IRS) based on each of your qualifying children, even if you get Social Security or SSI and don’t normally file a tax return. You also may have received up to half of your credit through advance monthly CTC payments made by the IRS from July to December 2021. For more information about advance monthly CTC payments, you can visit ChildTaxCredit.gov and the IRS 2021 CTC and Advance CTC Payments Frequently Asked Questions.
Will advance monthly CTC payments, or any CTC I claim on my tax return, reduce my Social Security or SSI benefits?
Advance monthly CTC payments, as well as any CTC that you claim on your 2021 tax return, won’t reduce your Social Security benefits.
If you receive SSI, we won’t count the CTC (or any advance monthly payments you might have received during 2021) as income or resources for 12 months after you receive it when considering your eligibility for SSI and monthly SSI payment amount. If you received any advance monthly CTC payments, be aware of when you received them. You can get that information from the IRS Child Tax Credit Update Portal.
How do I claim the CTC?
You can claim the CTC when you file your federal tax return for 2021. You can visit ChildTaxCredit.gov for options to file a federal tax return for free.
What if I have questions about the CTC?
Please visit ChildTaxCredit.gov and read IRS Filing Season 2021 CTC Questions and Answers if you have questions. Social Security can’t answer CTC questions.
The Earned Income Tax Credit
What is the Earned Income Tax Credit (EITC)?
The EITC provides low- to moderate-income workers and families a tax break. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund. The EITC amount you might get generally depends on your earned income and the number of your qualifying children.
Am I eligible for the EITC if I get Social Security or SSI?
Yes, if you meet the qualifying rules of the EITC. Receiving Social Security or SSI doesn’t affect your eligibility for the EITC.
Do my Social Security Disability Insurance (SSDI) or SSI payments count as earned income for the EITC?
Learn if your disability payments count as earned income for the EITC at the IRS’ Disability and the Earned Income Tax Credit webpage.
How do I claim the EITC?
To claim the EITC, you must qualify and file a federal tax return. You can visit ChildTaxCredit.gov for options to file a federal tax return for free.
What if I have questions about the EITC?
Learn more about the EITC, including basic qualifications, at the IRS’ Earned Income Tax Credit webpage. Social Security can’t answer EITC questions.
Your Annual Social Security Benefit Statement
What is the Benefit Statement and what do I do with it?
Your Benefit Statement is a tax form from Social Security that shows the total amount of Social Security benefits you received in the previous year. It’s also referred to as an SSA-1099. Noncitizens who live outside of the United States receive the SSA-1042S instead of the SSA-1099. You should report the amount of Social Security income you received to the IRS on your federal tax return.
The Benefit Statement isn’t available for people who only receive SSI payments because SSI payments aren’t taxed.
How do I get my annual benefit statement?
If you receive Social Security benefits, we mailed your Benefit Statement to your address on file with us. If you didn’t receive it, or if lost, you can get your SSA-1099 or SSA-1042S instantly online with a my Social Security account.
Remember to Check your Earnings History
If you don’t receive Social Security benefits, this is a great time to review your earnings history by looking at your Social Security Statement (Statement). It’s important because your future Social Security benefits will be based on your earnings history we received from the IRS. Underreported earnings will mean lower monthly benefit payments when you are ready to start receiving them.
Use your Statement to review your earnings history and to see personalized benefit estimates so you can plan for your future.
Tax season doesn’t have to be a stressful time of year. And for many people, it’s an opportunity to claim additional money. Thanks to the American Rescue Plan, more Americans can claim larger Child Tax Credits and Earned Income Tax Credits for 2021.
Please share this blog with family and friends and remember that Social Security is here to help secure your today and tomorrow.
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Tags: General Information, my Social Security, my Social Security account, Social Security benefits
See CommentsAbout the Author
Darlynda Bogle, Acting Deputy Commissioner for Communications
Darlynda Bogle, Acting Deputy Commissioner for Communications
Comments
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Gary
If you qualify is the hardest to understand. Your information was good but add how to qualify for each item listed as well please
Mari
Thank you!
Message has a lovely sound of human kindness!
Bholu
Thank you for this helpful article.Great Information
Carolyn V.
I never received the first or second stimulus check they sent somebody was claiming me they had no business claiming me
Stephen K.
Is it possible to still get any Missing Stimulus Checks from the Government from the Winter of 2020/2021?
Nadine V.
I did not receive the 3rd stimulus check. What should I do?
A.C.
Hi, Nadine. Thanks for visiting our blog. Please visit the IRS website for all your Economic Income Payment-related questions. If you are unable to find the answer, call the IRS hotline at 1-800-919-9835. Thanks!
Patricia H.
I NEVER RECEIVED ANY STIMULUS CHECKS AT ALL. WERE THEY SENT AUTOMATICALLY OR DID I HAVE TO APPLY SOMEWHERE? I USED MONEY FROM MY IRA AND PAID LOTS OF TAXES.
JILLYSPL@GMAIL.COM
A.C.
Hi, Patricia. Thanks for visiting our blog. Please visit the IRS website for all your Economic Income Payment-related questions. If you are unable to find the answer, call the IRS hotline at 1-800-919-9835. Thanks!
A.C.
Hi, Stephen. Please visit the IRS website for all your Economic Income Payment-related questions. If you are unable to find the answer, call the IRS hotline at 1-800-919-9835. Thanks!
Brenda B.
I don’t know what I am supposed to do but I would like a statment for the year of 2021 but I do not have any earned income for the year of 2021 and I am a victim of identity theft I would like to alert the social security official of this problem to protect by benefits please send me the statment I am supposed to use to file for the year of 2021 thank you
Debbie T.
Your probably going to need to create an account (very easy) once you have an account you will be assisted by Social Security Staff. They are very helpful and friendly.
A.C.
Hi, Brenda. Thanks for visiting our blog. If for any reason you have not received your SSA-1099 in the mail, you can request a replacement SSA-1099/1042S for Tax Year 2021 by visiting your personal my Social Security account. For additional information on how to request a replacement SSA-1099/1042S for Tax Year 2021, check out our Frequently Asked Questions. You also may be able to request a replacement SSA-1099 by using our automated telephone service at 1-800-772-1213. You can conduct the automated services 24 hours a day. At the prompt, indicate that you’re requesting a replacement SSA-1099.
Generally, identity theft issues are handled by the Federal Trade Commission. You can find more information on their website: http://www.idtheft.gov or by calling 1-877-IDTHEFT (1-877-438-4338). To learn more about the steps individuals can take to prevent or resolve issues of identity theft, check out our publication, Identity Theft and Your Social Security Number. We hope this helps.
Eric
The COLA increase this year is a joke. It will barely pay for the extra we pay for gasoline let alone everything else that has doubled in price.
Mark
You are supposed to pay for the increases in your cost of living with the stimulus checks the government sent out. However, not everyone got a stimulus check. Therefor, many people have significantly less money now due to the stimulus checks. It really wasn’t free money. It was just temporary, and now there is lots of financial suffering. If you ever get a stimulus check again, ration it out over a long period of time as prices of consumer goods go up when that happens.
Kathy D.
I’m hoping to answer some questions for my stepmother. She lives solely on Social Security. Is there any reason or any benefit to her filing a tax return? I know her SS is not taxable, but I don’t want her to miss out on other benefits if a tax return would get those for her. She does not qualify for CTC or EITC.
John B.
Not really. It is a huge increase relative to most SS cola adjustments.
A.C.
Hi, Kathy. 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.
LilianB
Do we get an extra $1700 addition to our SS when we file?
EC
The Social Security Act of 1935 is based on 2 basic principles enacted by President Roosevelt:
1. Rely to the maximum extent on the States to administer the program
2. Rely to the maximum extent on contributory social insurance for protection against destitution
As such, the Social Security Act included 2 types of contributory social insurance: old-age retirement insurance (now Old-Age Survivors & Disability Insurance) & unemployment insurance.
Currently, our Social Security system works like this: workers in the U. S. pay taxes into Social Security, & this tax money is used to pay benefits to:
• People Who Have Already Retired
• People with Qualifying Disabilities
• Survivors of Workers Who Have Died
• Dependents of Beneficiaries
While the majority of people receiving benefits are retired, Social Security eligibility could occur at any age, depending on circumstances. (According to the SSA, children receive more benefits from SSA than other government programs.)
2022 Social Security taxes
• You pay 6.2% & your employer pays 6.2%.
• If you’re self-employed, you pay 12.4%.
• You don’t pay Social Security taxes on earnings greater than $147,000.
Approximately 85 cents of every Social Security tax dollar paid goes into a trust fund that pays monthly benefits to
• Current retirees & their families
• Surviving spouses
• Children of workers who have died
Less than 15 cents goes to a trust fund that pays benefits to people with disabilities & their families.
Finally, less than one penny of each Social Security tax dollar paid goes toward managing the program.
Debbie T.
Thank you for that information. It is very helpful to see an easy to understand breakdown of a small amount that any adult can comprehend!