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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Terry C.
We spend billions supporting non citizens but do little to improve the quality of life for seniors households on Social Security.
1. How about correcting the shortfalls with the COLA over the past 15 yrs with a 15% increase to Social Security recipients paychecks plus the normal ANNUAL COLA.
2. Unconditionally eliminate Federal Income Taxes on Social Security recipients paychecks. Many seniors who have to supplement their SS income end up having to pay federal income taxes on their social security paychecks because they fall into a higher tax bracket. This needs to stop.
EB
totally agree, am 70 still working 40+ hrs a week cause i can’t afford to retire… scared for the future! health care is a nightmare…
Greg T.
I’m in the same boat. It seems like the boat is sinking. I never prepared for retirement. It’s my fault. So I guess I’ll have to work for a good while longer. I’m 66, and just started receiving SS. I had to claim what they paid me last year. And I do pay estimated taxes during the year. Can’t get ahead.
Linda
Its called double dipping. We already paid taxes on the moneys we pay in in SS and get taxed on that too. And all phone lines are busy for every number I can find.
JOHN B.
I totally agree they should not tax a tax
Davis
Social security shall be exempt from federal and state taxes.
Beau
Social security is not a tax. It is a retirement account you pay into. It is not designed to take care of you in your retirement years, it is designed to supplement your personal retirement. So if you did not save for retirement, that is on you. Don’t blame the government because they are trying to get you to save.
Joan K.
“Noncitizens who live outside of the United States receive the SSA-1042S instead of the SSA-1099.” Non citizens who don’t even live in the United States receive benefits? Non citizens who just moved here and are over 62 can receive benefits and never contributed. And people wonder why there is a shortfall. They blame it on the boomers. No, blame it on giving it away and using it for where it was not intended.
Maria G.
I agree, for citizens to pay SS taxes for citizens with SS checks that is part of their supplement for living is just crazy. That should be for people now working just like we did years n years n years to get this small check, now again TO PAY MORE TAXES IS JUST RIGHT DOWN CRUEL!!
Victoria H.
Totally agree. I cannot cover my overhead with just SS so I work part-time at 70. But it is increasingly difficult to work any longer. I will be homeless since I’m a renter paying market rates. And why is Medicare tax deducted from my paycheck each week? Then, I pay a premium each month?
Greg B.
Terry and EB are spot on. The most helpful changes would be:
1) Recognize the basket of goods comprising COLA is different for retirees. COLA for SSA should be calculated almost solely on:
a: Rent
b: Food
c: Energy
d: Health Care
2) SSA should never be counted as income. It has more in common with insurance. If IRS wants to claw it back, then means test it. If this idea cannot be implemented, then do #3.
3) Like EB, I also continue to work and the higher taxes are an insult. I don’t even want SSA yet, but because I’m 70 I am forced to take it. People should have the option to postpone SSA benefits to whatever age they want. From an actuarial perspective, to help keep SSA solvent, I’m even willing to let SSA incorporate a post-70 benefit calculation that asymptotically approaches a maximum benefit at 75 after which it goes no higher, regardless of when it’s claimed after 75.
K
SSA is a complete joke
Beau
You say social security is a joke, but I’ll bet you collect on it!
Such hypocrisy!
Stephen B.
Credits for people who don’t work…credits for just dropping another baby…our current government is just giving away honest people’s money to the folks who don’t contribute anything to our country.
Meanwhile, hard-working people have to keep paying.
Thanks, Biden! Anyone who voted for this idiot garbage bag…hope you get cancer.
Valerie L.
That’s not very Christian of you to wish cancer on anyone. In order to have your opinion respected, you need to be respectful.
Stephen B.
Well I’m a Muslim so thanks for the insult.
K.
Who says he’s a Christian?? True, you shouldn’t wish cancer on anyone, but this does speak the truth. Biden IS a garbage bag who wants to turn the USA into a California
John b.
I graduate from college in California and it wasn’t for free two-year college I won’t be where I am today in California wouldn’t be most richest state in the union so keep talking your BS because you know nothing
And Trump let Putin in the front door
Mr. E.
your message lacks grammar, so please don’t reveal what California college you attended. I could barely decipher it. FACT: California has the highest percentage of POVERTY in the U.S.
It’s number one! The middle class died out there 20 years ago. Cities are infested with druggies, criminals, on and on. If that is your idea of Utopia, then stay there, and look for the nickels that fall out of politicians’ pockets, so you can learn to beg.
Dale
LOL – The state of California has the FIFTH LARGEST ECONOMY IN THE WORLD. You should be so lucky your state was like CA.
Renee M.
That is a horrible thing to wish on someone. You must have never experienced someone fighting Cancer. Regardless of how you feel about the policies to wish that on anyone is pure evil. Remember…you reap what you sow
Stephen B.
I have cancer. Thanks for judging me.
Of course, nothing about the substance of my criticism.
Mike V.
Shut your pie hole! No one needs to hear your BS or political opinion. The system is outdated and has been pillaged for years. So don’t try and pin the problem on one administration just because you believe the hyperbolic misinformation that is being spread.
b s.
that is very mean. are you a trumpet. he did nothing except kill people.
dave
You are a moron. Biden has just killed 13 service men and women in Afghanistan.
Tony R.
What do you think Biden has to do with this age old system? If you’re a hater, just come right out and say it instead of misplacing blame.
Fran P.
Biden is the President of the United States (sadly). That means the buck stops at his desk. As far as using social security for purposes not intended fiving it to people who never contributed. I know far too many Americans who paid into the system all of their working career and it is all they have in retirement. Those people are barely surviving. They sh.ould get more support before illegals and people with kids who have supposed ADHD
Maria G.
I agree some elderly citizens of the USA is barely surviving. And young kids, 16,17,18,19 years old just having babies not paying a cent to have them and not even working to contribute to the USA. This have been going on since 1983 and Biden was not the President At that time
Flower C.
Good answer!
Vicki
If you have ever watched someone you cate about suffer from or even die from cancer, you would say that!!!! Well I guess you would, you just seem that stupid. Be careful what you wish on others. What goes around comes around. You are a real jerk and everyone that read your comment is aware and my guess anyone that has met you. I hope you do not get cancer because I am not an ignorant stupid jerk.
Bill B.
Most of those credits have existed for years if not decades. This is just typical “My party lost so everyone else sucks and is evil” gibberish. Identical to the idiotic brouhaha over phones.
John S.
Wasn’t it Obama who signed the Social Security Act into law in 1934?
I hate these socialist programs. Starvation builds character.
RL G.
Biden???? I never had to pay taxes on my SS until 2018- 21! I started getting $1500 LESS from my returns and had to pay more in state taxes (GOP gov. )
So this year I will hopefully see monetarily if things have shifted to support the seniors.
TJ
Why blame Biden. This has been a problem for years, regardless what party is in office. Blame it on the other politicians who bicker over changing anything, fearful the other party in majority or president gets all the credit.
Dave g.
Well… I don’t hope they get cancer, but I agree with you otherwise.
John
That was really heartless what you said
GRB
You can thank Reagan, not Biden for your complaints about SSA. The changes that taxed SSA were implemented in 1983.
Chuck W.
This is an artifact of the “trickle down economics” days. Since nothing trickled down, money had to come from somewhere. This convoluted mess of legislation was not enacted by Biden or any other single individual, but is the some total of a plethora of legislative band-aids designed to keep the passes appeased. The policies that created this mess result from the partisan see-saw. Dump the two-party system, that would help.
Beau
REALLY! You are blaming Biden for a program that was established how many years ago? Come on!!!! Are you really that ignorant! Pathetic!!!!
jon d.
@stephen blake..
there is an old saying liknda like if you wish a grave on someone make sure YOU dig 2…nuf said
John G.
Stephen,
May your finger break through the toilet paper today when you wipe your bottom.
Robert H.
It’s hard enough having to wait 30 minutes on a call to get a representative. Please can you stop your automated system from hanging up on people? This happens TOO MUCH.
Robert H.
It’s hard enough having to wait 30 minutes on a call to get a representative. Please can you stop your automated system from hanging up on people? This happens TOO MUCH.
Sorry I had to enter this again. Gave wrong email address.
Rebecca S.
I agree with you 100%, i have waited over 1 hr to get a rep on the phone, and when someone finally comes to the rescue, the stupid automated system hangs up instead! Its extremely upsetting and since its important enough to talk to someone, I will calm myself down and try again! Exact same thing happens with the IRS multiple time! They can send a man to the moon, but can’t seem to fix the automated system from hanging up on people after waiting hours!!!
Cathie
LOL. I had two calls going at the same time, both were on hold FOUR hours after which the calls were dropped!!!
John b.
Every time I contacted Social Security I got the correct answer In my mind it is the only government bureaucracy that actually does an excellent job
Halo
I agree with the comments about being on hold and calls dropping.
Please put in a system that you can leave your phone number and they will call you back when it is your turn in line.
Also, there are plenty of people drawing unemployment that would be capable of doing the job. Train and hire them.
Thank you.
maria d.
l called ss local office and requested 1098 forms for tax filing to irs, and representative told me l cannot file tax papers with 1099. Above info. claims l could file. What is the true information, l recieve ss disability?????
Maureen D.
I need my tax information for filing my income tax and I tried on line … and was told they would mail me a ‘code’. I’ve not received any such information.
Kyle H.
They rext the code to your phone actually, or they call you with it. SSA does NOT “mail” access or security codes. I deal with this system constantly for myself and my family members, one of whom I am the Representative Payee for with SSA.
A.C.
Hi, Maureen. We are sorry to hear that. 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. We hope this helps.
A.C.
Hi, Maria. 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.
Fred
How do I get a review of my WEP reduction?
SAM
Good Info Sir
Lyrical W.
Good Info ABout Taxes Thank YOU Latest Songs 2022
Lisa R.
Would I get any money.
James R.
I’m retired and have two six-year-old children. As a result, they are receiving Social Security benefits which I handle as their Representative Payee. I was rather surprised by this – I was only aware of survivor’s benefits, I didn’t expect that they would receive benefits while I was still alive.
My wife is still employed. She and our property earn, together, enough taxable income that my social security benefits are themselves 85% taxable.
How should I handle the money I receive on behalf of my children for income taxes?
Do I include it with my own Social Security benefits?
Do I need to file separate income tax forms for them, with their Social Security benefits being their only source of income (and therefore, probably not taxable)?
K.O.
Hello James. 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.