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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TomV
I received an unsolicited email from SSA.
I think it was from this
Terry A.
I/O back child support. Will the IRS garnish my tax credit this year?
Mark A.
This question has nothing to do with Social Security or this blog post. Direct your question to the IRS.
A.C.
Hi, Terry. For questions about how a garnishment may affect your tax credit, 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.
Coral S.
Do I need to have tax taken out of my Social Society? If so, what are the guidelines as far as income limits?
Rosemary
Yes. If your agi is over 25k you are taxed on a portion of your SS benefit up to 85 percent depending on your income even though your contributions were not deducted from your gross income going in . However, those who were fortunate to work for the state under a defined benefit pension plan (like public school employees) their contributions are deducted from their gross pay. Totally unfair and thanks to President Carter who also instituted the windfall profit law. Talk to your rep about this. Totally unfair.
A.C.
Hi, Coral. 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. 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.
Ricci D.
Why are we paying taxes on SS in California when have already paid taxes on that income previously?
DebPeters
If you go back to your W-2 forms, you have a different taxable income from your gross wages, which represents your gross minus SS deductions, so you have not yet been taxed on this income.
Jim H.
I just signed up for SS at 66 years old. I still work, make about $83,000. This website contains too much information. It’s overwhelming and confusing.
I wish there was a checkbox for someone with my criteria (above) rather than a kitchen sink for everybody myriad of information that would take hours and hours to negotiate.
As someone new to SS, I don’t know what I need to know, and the website is too cumbersome.
Thank you for all you do though.
Linda
I agree with your comments. Here is information I got directly off their website.
The Social Security earnings limit is $1,630 per month or $19,560 per year in 2022 for someone who has not reached full retirement age. If you earn more than this amount, you can expect to have $1 withheld from your Social Security benefit for every $2 earned above the limit.Jan 19, 2022
Just M.
Can I work full time at 66 and collect Social Security?
When you reach your full retirement age, you can work and earn as much as you want and still get your full Social Security benefit payment. If you’re younger than full retirement age and if your earnings exceed certain dollar amounts, some of your benefit payments during the year will be withheld.
https://www.ssa.gov/pubs/EN-05-10147.pdf
D
SO What is full retirement age? 66 or 70? Info is still a little confusing 🙁
Just M.
66 and 4 months
If you were born in 1956 your full retirement age is 66 and 4 months. You can start your Social Security retirement benefits as early as age 62, but the benefit amount you receive will be less than your full retirement benefit amount.
https://www.ssa.gov/benefits/retirement/planner/1956.html
Mark
It depends on when you were born. There are 7 full retirement ages. Go to ssa.gov/benefits/planner/agereduction.html
A.C.
Hi, D. If you were born between 1943 And 1954, your full retirement age is 66. Full retirement age is the age at which a person may first become entitled to full or unreduced retirement benefits. For more information, visit our Retirement Benefits Planner. Thanks.
Linda
Jim what exactly is your question Maybe I can help you figure it out. I’m a 40 year plus accountant And just turned 62 in 2020 2021. My concern was how much money can I make since I haven’t reached full retirement age before I’m penalized on my social security. It was hard to figure out but the previous information I gave you is where I got my answer. as A former accountant I felt I could understand things easily on these websitesnot by any means was I able to understand all the rules and regulations. I too had to cipher through the IRS website and social security website to get the information I needed. If any of the information I have gathered is helpful to you I’m willing to share just let me know what your questions are I’ll do my best
Lakeelar S.
Do we have to pay tax on money withdrawals from IRA account last year
Randy
Yes. Taxed as regular income on your federal and state returns.
Carolyn B.
What is the % rate to pay taxes on please?
Mark
It depends on your taxable income amount. Do you tax return to find out.
A.C.
Hi, Carolyn. 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.
Mark
ROTH IRA withdrawals are not taxable.
Mark
I know. But Carolyn B. was not asking about what was taxable, nor whether Roth IRAs withdrawals were taxable.
Devoria
Yes you will, unless you put it back before the end of that year.
Mark
If a Traditional IRA, yes. I a Roth IRA, no.
A.C.
Hi, Lakeelar. 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.
Donna C.
If I receive Survivors benefits is there a certain amount of work income Ican make?
A.C.
Hi, Donna. If you are under your full retirement age, the earnings limit in 2022 is $19,560. In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age. For more information, please visit our Frequently Asked Questions. If you receive benefits, are under full retirement age, and you think your earnings will be different than what you originally told us, you should let us know right away. Please call us at 1-800-772-1213 (TTY 1-800-325-0778), 8:00 am – 7:00 pm, Monday through Friday, or you can contact your local Social Security office. We hope this helps.
Fred W.
I have a business. Purchased a Semi 6 years ago. My depreciation ran out on 2021 taxes. This year the payments are 30,000. This will still count as my income. I’m only allowed almost 20,000. This puts me over 10,000 dollars I can earn! What can I do besides filing bankruptcy. I don’t have a clue as to what to do. Thank you for any help you can give!
Mark
Are you saying that the semi is fully depreciated? What are those “payments”? Payments on a loan you took to buy the semi? What is “this” that still counts as income? What is it that only allows 20,000? One does not usually declare bankruptcy unless one is in deep, deep debt.
A.C.
Hi, Fred. Unfortunately, your comment is a bit more complex than we can handle in this forum. 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.
Lois J.
I have not received an answer
Mark
What was your question?
Lois J.
I am trying to amend my taxes because I forgot to put my social security on my tax forms so where do I find the tin number for my social security ?
A.C.
Hi, Lois. 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.