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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Dorothy L.
Reported to Social Security. Worked TWO (2) SCHOOL YEARS years at first school district upon arriving in CA. WORKED OVER TWO FULL SCHOOL YEARS at second school in CA. Per my social security history report, reported social security reported as paid for both districts is for only ONE (1) year, from both districts! Even a kindergartener can see pass this scam! Almighty God saw the wickedness that would be done to some of us, and He let it be written: “Suffer yourself to be defrauded.” Sadly, only the wicked can do this! More sadly is that they do not believe, at the Judgment Throne, they will be repaid! Yes, ALL who have done wickedly, doing unto others what they would not want Almighty God, or others, to do unto them. No response to date.
JustMe
I receive SSI/SSDI. I recently received an inheritance from my deceased daughter of a 401K and a 403B. What consequences are next.?
Steven W.
So I’m confused about this I was told because I’m on disability since the beginning of this year I can’t or do not get taxes or have to file my taxes. Unless I start working part time I can file for that. But I’m confused about the special tax credit for people on SSI and SSDI it says I can use my disability income statement for taxes. Does that mean I can get money from taxes using that or no?? It says I can’t file them as unearned credit??? I’m new to this whole SSI thing and I usually have my dad do my taxes before I was on disability but I was told I won’t get them now unless I work part time but not froy disability so I’m so confused about all this lol can someone explain all this plz kinda dumb it down for me plz…..
A.C.
Hi. Social Security Disability Insurance (SSDI) benefits are based on earnings and are not subject to income and resource limits. An inheritance will not affect your SSDI benefit but it may affect a person’s Supplemental Security Income (SSI) benefit. For more information, please visit our Understanding Supplemental Security Income (SSI) Resources page. If you have additional specific questions, please 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.
Rev.Kenneth C.
I live on SSID…. Do I need to file? And would I even get enough to pay a tax preparer?
Brigitte J.
Do I need to bring on ss
A.C.
Hi. Thanks for visiting our blog. You must pay taxes on your benefits if you file a federal tax return as an “individual” and your “combined income” exceeds $25,000. If you file a joint return, you must pay taxes if you and your spouse have “combined income” of more than $32,000. If you are married and file a separate return, you probably will have to pay taxes on your benefits. For more information, visit our Benefits Planner. For tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040 or you can visit their website. We hope this helps.
David B.
Plenty of good questions. A dirth of informative replies. Some “official” with SS should be anwering these questions.
Barbara P.
Indeed!
Reza D.
Social security officials and staff normally don’t anwer tax related questions. Large organizations and large businesses these days don’t like to answer important questions or make any type of comments in writing that can be used in legal actions against them. It’s bad but it’s the times we live in!
Diana
I received a lump sum as check. Is it taxable? If I used the money to buy an IRA is it still taxable?
A.C.
Hi, Diana. 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.
Diane G.
I have no childern, live on social security and a small pension Do i file a tax return?
Diane G.
can i file tax returns if my only income is social security and a small pension?
A.C.
Hi, Diane. Thanks for visiting our blog. You must pay taxes on your benefits if you file a federal tax return as an “individual” and your “combined income” exceeds $25,000. If you file a joint return, you must pay taxes if you and your spouse have “combined income” of more than $32,000. If you are married and file a separate return, you probably will have to pay taxes on your benefits. For more information, visit our Benefits Planner. For tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040 or you can visit their website. We hope this helps.
Jay N.
I am getting SS benefits and am also working full time. My earnings are updated for year 2021. I paid social security taxes and also my employers matching is also updated for the year 2021. Will it increase my monthly earnings?
A.C.
Hi, Jay. Thanks for your question. Each year we review the records for all working Social Security recipients to see if additional earnings may increase monthly benefits. If your earnings for the prior year are higher than one of the years we used to compute your retirement benefit, we will recalculate your benefit amount. Generally, we will send a letter explaining any increase in your benefit amount. For more information, please visit our Receiving Benefits While Working page. We hope this helps.
Margaret E.
How can I have income tax taken out of my Social Security?
Barbara P.
Contact your local social security
Office.
A.C.
Hi, Margaret. 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.
Cheryl A.
Do I have to file income taxes if my only income is my social security?
marla g.
Do I have to file income taxes if my only income is my social secutity?
A.C.
Hi, Marla. Thanks for visiting our blog. You must pay taxes on your benefits if you file a federal tax return as an “individual” and your “combined income” exceeds $25,000. If you file a joint return, you must pay taxes if you and your spouse have “combined income” of more than $32,000. If you are married and file a separate return, you probably will have to pay taxes on your benefits. For more information, visit our Benefits Planner. For tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040 or you can visit their website. We hope this helps.
Diane G.
Do I have to file income taxes if my only income is my social secutity? and a small pension i do not have childern.
K.O.
Hello Diane. Thanks for visiting our blog. For information about paying taxes on Social Security benefits, please visit our Frequently Asked Questions. For specific federal tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040 or you can visit their website. For state tax questions, contact your state Department of Revenue or Tax Commission. We hope this helps.
Helen A.
I get $27414.00 from SS. no other income..no taxes taken out.
Barbara P.
You have 2 have federal taxes taken out either directly from as check or u will need 2 pay at tax time.
I usually pay a lot at tax time but I prefer to have all my money up front.
Dave B.
You must file if one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($35,000 if married filing jointly). You should consult with a free tax service such as the AARP TaxAide office near you. It is a free tax preparation service.
REZA D.
The SSA.org website has some good articles on these basic topics and questions.
I just read on their website that social security supplemental income (SSI) is not taxable income.
A.C.
Hi, Cheryl. Thanks for visiting our blog. You must pay taxes on your benefits if you file a federal tax return as an “individual” and your “combined income” exceeds $25,000. If you file a joint return, you must pay taxes if you and your spouse have “combined income” of more than $32,000. If you are married and file a separate return, you probably will have to pay taxes on your benefits. For more information, visit our Benefits Planner. For tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040 or you can visit their website. We hope this helps.