Tax Season: What To Know If You Get Social Security or Supplemental Security Income
Reading Time: 4 MinutesLast Updated: November 2, 2023
It’s tax season once again. It’s important to read this blog even if your earnings or benefits don’t require you to file a federal tax return. You may be entitled to special tax credits that can mean extra cash to help you with expenses. These tax credits are available even if you receive Supplemental Security Income (SSI) and don’t normally file a tax return.
The Child Tax Credit
What is the Child Tax Credit (CTC)?
The CTC is a tax benefit, expanded in March 2021, that helps families who are raising children. You can claim the CTC for any qualifying child even if you don’t usually file a federal tax return. You can get up to $3,600 per qualifying child under age 6, and up to $3,000 for each qualifying child age 6 – 17. These ages are determined as of December 31, 2021.
Am I eligible for the CTC if I get Social Security or SSI?
Yes, if you meet the qualifying rules of the CTC. You can claim this credit from the Internal Revenue Service (IRS) based on each of your qualifying children, even if you get Social Security or SSI and don’t normally file a tax return. You also may have received up to half of your credit through advance monthly CTC payments made by the IRS from July to December 2021. For more information about advance monthly CTC payments, you can visit ChildTaxCredit.gov and the IRS 2021 CTC and Advance CTC Payments Frequently Asked Questions.
Will advance monthly CTC payments, or any CTC I claim on my tax return, reduce my Social Security or SSI benefits?
Advance monthly CTC payments, as well as any CTC that you claim on your 2021 tax return, won’t reduce your Social Security benefits.
If you receive SSI, we won’t count the CTC (or any advance monthly payments you might have received during 2021) as income or resources for 12 months after you receive it when considering your eligibility for SSI and monthly SSI payment amount. If you received any advance monthly CTC payments, be aware of when you received them. You can get that information from the IRS Child Tax Credit Update Portal.
How do I claim the CTC?
You can claim the CTC when you file your federal tax return for 2021. You can visit ChildTaxCredit.gov for options to file a federal tax return for free.
What if I have questions about the CTC?
Please visit ChildTaxCredit.gov and read IRS Filing Season 2021 CTC Questions and Answers if you have questions. Social Security can’t answer CTC questions.
The Earned Income Tax Credit
What is the Earned Income Tax Credit (EITC)?
The EITC provides low- to moderate-income workers and families a tax break. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund. The EITC amount you might get generally depends on your earned income and the number of your qualifying children.
Am I eligible for the EITC if I get Social Security or SSI?
Yes, if you meet the qualifying rules of the EITC. Receiving Social Security or SSI doesn’t affect your eligibility for the EITC.
Do my Social Security Disability Insurance (SSDI) or SSI payments count as earned income for the EITC?
Learn if your disability payments count as earned income for the EITC at the IRS’ Disability and the Earned Income Tax Credit webpage.
How do I claim the EITC?
To claim the EITC, you must qualify and file a federal tax return. You can visit ChildTaxCredit.gov for options to file a federal tax return for free.
What if I have questions about the EITC?
Learn more about the EITC, including basic qualifications, at the IRS’ Earned Income Tax Credit webpage. Social Security can’t answer EITC questions.
Your Annual Social Security Benefit Statement
What is the Benefit Statement and what do I do with it?
Your Benefit Statement is a tax form from Social Security that shows the total amount of Social Security benefits you received in the previous year. It’s also referred to as an SSA-1099. Noncitizens who live outside of the United States receive the SSA-1042S instead of the SSA-1099. You should report the amount of Social Security income you received to the IRS on your federal tax return.
The Benefit Statement isn’t available for people who only receive SSI payments because SSI payments aren’t taxed.
How do I get my annual benefit statement?
If you receive Social Security benefits, we mailed your Benefit Statement to your address on file with us. If you didn’t receive it, or if lost, you can get your SSA-1099 or SSA-1042S instantly online with a my Social Security account.
Remember to Check your Earnings History
If you don’t receive Social Security benefits, this is a great time to review your earnings history by looking at your Social Security Statement (Statement). It’s important because your future Social Security benefits will be based on your earnings history we received from the IRS. Underreported earnings will mean lower monthly benefit payments when you are ready to start receiving them.
Use your Statement to review your earnings history and to see personalized benefit estimates so you can plan for your future.
Tax season doesn’t have to be a stressful time of year. And for many people, it’s an opportunity to claim additional money. Thanks to the American Rescue Plan, more Americans can claim larger Child Tax Credits and Earned Income Tax Credits for 2021.
Please share this blog with family and friends and remember that Social Security is here to help secure your today and tomorrow.
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Tags: General Information, my Social Security, my Social Security account, Social Security benefits
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Darlynda Bogle, Acting Deputy Commissioner for Communications
Darlynda Bogle, Acting Deputy Commissioner for Communications
Comments
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Patricia S.
Where can I find the details of the Stimulus I was supposed to receive back in March 2021? Supposedly it was Electronically transferred into my checking account; however, I have no memory of receiving this $$ and cannot find a deposit of it into my checking account.
Helen S.
I didn’t know there should have been a stimulus. Am 82 yrs old
Thx
A.C.
Hi, Patricia. 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!
Michelle R.
I started receiving benefits upon initial eligibility so I get the minimum amount. I am now 69 so will my monthly amount ever increase as opposed to constant increase in the amount that I have to pay extra for part B because of the amount of my federal retirement benefits that I earned? It does not seem fair to penalize me for the amount of retirement and require me to pay extra when I only receive minimum benefits.
Nelson S.
I received a 1099-C because of a Chapter 13 bankruptcy. It is a sizeable amount. I normally do not file a return as I live on my SSA pension. No other income. Do I have to file a return and include this as income? Thank you.
Maureen W.
As I understand it, 1099C is issued to those that owed money and some or all becomes taxable. If you have been relieved of the amount outstanding you would be required to pay taxes on that amount, via 1099C
Hope this helps.
A.C.
Hi, Nelson. Thanks for visiting our blog. 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.
Lora
My earnings history on My Social Security Statement are not correct as a few years have 0 where there should be earnings. This means I am not receiving enough SS each month. Every time I call (and on hold for over an hour), they won’t help me…..they say they are only taking covid related problems for the time being. Meanwhile, I am trying to live on $826 a month. Help !!!!!?
Mo
Your best bet is if you’re able to by going to local social security office in your area. If you have copy of claimed earning such as W2 forms from previous employers that would help local social security office to straightened the things for you. Good luck.
msbmh
Were they in your top 35 highest earning years? SSA is determined by the top highest earning 35 years divided by 420. SO that means 420 months of income average. TO calculate add you top 35 highest years earnings divide by 420. That’s your monthly SSA benefit. There is also a link here to help. Also your employeer may not have paid taxes on your income those years, so they will not be included. That is why you should never “work under the table”
Ron
What if I don’t have 35 years of earnings then what?
A.C.
Hi, Ron. If an individual is eligible to retire at age 62, we use the highest 35 years of earnings to compute an individual’s benefit amount. If the individual does not have 35 years of earnings, we will use all of the earnings on the record. We will factor in an annual total of $0.00 earnings for each of the remaining years. For more information, check out our publication, Your Retirement Benefit: How It Is Figured. We hope this helps.
A.C.
Hi, Lora. Thanks for your question. To correct your earnings record, you will need to provide us evidence of your earnings, such as W-2s, pay stubs, etc. For more information, please visit our Frequently Asked Questions. We hope this helps.
Michael H.
I am having a problem signing in to check my account. Can I get some help with this?
J. H.
Try the forgot password link and make sure you’re inputting the correct information, especially the answers to your security questions.
JHolloway
Try to reset your password and make sure you answer the security questions correctly.
A.C.
Hi, Michael. If you created a personal my Social Security account before September 18, 2021 and you are still are unable to access your account, please our dedicated my Social Security Hotline at 1-800-772-1213, and say “helpdesk” at the voice prompt. The help desk is available to callers between 8:00 a.m. and 7:00 p.m. (Eastern Time).
The Login.gov contact center will assist users through the Login.gov proofing flow only i.e. to help create, sign in and manage the customer’s login.gov account. This is done only through their online web support page (https://login.gov/contact/) where customers can submit their questions/concerns. Though customers can submit their questions at any time, login.gov’s customer support operating hours are Monday – Friday, 8:00 a.m. – 8:00 p.m. (Eastern Time) and it could take up to two business days for their customer support agents to respond to inquiries.
For ID.me registration and/or authentication process, the users should contact ID.me through their customer support page on https://help.id.me/hc/en-us/categories/360005564453-Verifying-for-the-Social-Security-Administration. The page also allows users to submit their requests for any inquiries https://help.id.me/hc/en-us/requests/new.
We hope this helps.
john d.
I cannot access the economic impact payments I recieved,ID.me is impossible to get into,will not accept Iphone pics etc. etc.
what is going on here,are we in the Ukraine
A.C.
Hi, John. We are sorry to hear that. 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!
S.A. D.
I am still employed. but receive ss benenfits. how can I have taxes taken out of social security?
Frank
Call your local SS office and have them send you a W-4. Follow the instructions. Simple.
Leo G.
I am retired. How do I go about having taxes taken out of social security.
A.C.
Hi, Leo. Thanks for your question. In order to have taxes withheld from your Social Security benefit, you must start by printing, completing and submitting an IRS Voluntary Withholding Request Form (Form W-4V). On this form, you can choose to have 7, 10, 12, or 22 percent of your monthly benefit withheld. The Form W-4V (to withhold federal taxes from your Social Security benefits) can be returned to your local Social Security office by mail. See our Benefits Planner: Withholding Income Tax From Your Social Security Benefits web page for more information. We hope this helps.
A.C.
Hi, S.A. In order to have taxes withheld from your Social Security benefit, you must start by printing, completing and submitting an IRS Voluntary Withholding Request Form (Form W-4V). On this form, you can choose to have 7, 10, 12, or 22 percent of your monthly benefit withheld. The Form W-4V (to withhold federal taxes from your Social Security benefits) can be returned to your local Social Security office by mail. See our Benefits Planner: Withholding Income Tax From Your Social Security Benefits web page for more information. We hope this helps.
J44
whatever
Karen c.
Do vets that are disabled have to pay state taxes on social security?
Ron M.
I would check with your state Dept of Revenue.
J. H.
Social security benefits are taxed, disability is not.
Rob S.
That is not entirely true. Disability is taxed if you make over a certain threshold!
A.C.
Hi, Karen. Thanks for visiting our blog. For state tax questions, you will need to contact your State Tax Commission or Department of Revenue. We hope this helps.
James M.
How Do I increase the Federal and State Tax deduction to cover for the amount of money I am receiving every month? I believe the withholding deductions are too low. Please advise. Thank You, Regards James B.
Belle C.
Your employer bases your federal tax withholding on your tax filing status and the number of personal allowances claimed on your W-4. The more allowances you claim, the lower your withholding. Accordingly, if you’ve claimed too many allowances, your employer would take out enough for your federal income taxes.
A.C.
Hi, James. In order to have federal taxes withheld from your Social Security benefit, you must start by printing, completing and submitting an IRS Voluntary Withholding Request Form (Form W-4V). On this form, you can choose to have 7, 10, 12, or 22 percent of your monthly benefit withheld. The Form W-4V (to withhold federal taxes from your Social Security benefits) can be returned to your local Social Security office by mail. See our Benefits Planner: Withholding Income Tax From Your Social Security Benefits web page for more information. To inquire about withholding state taxes, you should contact your State Tax Commission or Department of Revenue. We hope this helps.