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
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Andrea L.
I recieve ssi. This past year I did not work but I took money out of my 401. I payed state tax but not federal tax.( It was under $3000.00) do I have to filed taxes?
A.C.
Hi, Andrea. 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.
Missy
Hello, I was awarded SSDI, effective 6/21.
I received back pay for 2019, 2020 and part of 2021- in a lump sum in June ‘21. The 1099 I received shows my earnings, all combined, but the 1099 shows actual figures of the backpay for ‘19 and ‘20.
Question: am I able to revise my 2019 taxes?
File for 2020, since previously I didn’t file due to zero income.
And.. subtract those 2 yrs of backpay for my 2021 income?
Rani
I have a similar issue. From what I read, there is a way to get the appropriate back pay counted for the previous years, because it is the SSA’s fault it took so long, so it doesn’t all hit you in 2021. Google ‘taxes on ssdi back pay’ or something like that, and you will find good info. I found some on Nolo.com, generic but useful.
Lady D.
The 2021 1099 hasn’t been compiled and mailed yet. You receive the year’s info at the beginning of the next year – that is it will be shown on the 1099 you receive in 2022.
Laura
The tax software I used (tax act.com) walks you through those questions but basically it will ask you about lump sum payments for each year
A.C.
Hi, Missy. 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.
t. r.
All of my social security benefits goes directly to medicare. Yet, social security tells me I received no payments. They have never sent me a 1099 for filing the return as “I receive no payments”. Can I file a return without this information?
Missy
How do I add my own question on here? Don’t know who else to ask!
A.C.
Hi, T. 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.
Skyytracker
Great how the ones who actually support Nazi atrocities (dehumanization of a segment of the populace, abortion, experimentation on the aborted fetus, .) turns and calls the other group the Nazis. “Don’t look over here, they’re the bad guys”
https://www.skyytracker.com/
wesley b.
you are absolutely correct.
Kevin T.
Darlynda,
I am currently receiving spousal benefits on my wife’s acct. and would like to begin receiving them from mine. How do I go about making the change from her acct. to my own?
Wanda S.
I get my husbands and mine at the same time
A.C.
Hi, Kevin. Thanks for visiting our blog. Since you are currently receiving benefits on your wife’s record, please contact your local Social Security office for assistance with applying on your own record. We hope this helps.
Phil T.
Hey, Darlinda,
I haven’t received a 1099 and would love to complete filing my taxes. My wife received her 1099 in late January??? I inquired at my local office 3 weeks ago and they eventually replied that, since I am receiving spousal benefits, my 1099 would be sent no later than the end of February. A week+ into March and I still have no 1099. mySocialSecurity has no replacement document for reasons I can’t fathom??? I could have filed my taxes a month ago and I definitely do not want to file an extension. Isn’t in the interest of the government in general, never mind the taxpayers, to expedite tax return filing? I haven’t been able to get through on a phone line for several days now. Help me, please.
Ron M.
you might be able to get it from the My social security web sight or by clicking on that link it Darlinda’s message above
A.C.
Hi, Phil. 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.
Michael H.
I have a question about how/where to file my SS income.
I lived in California January until May 2021.
In May 2021 I bought a house and moved to Arizona.
For my California return do I claim 5 months of SS and 7 months of SS on my Arizona return?
A.C.
Hi, Michael. You will need to contact your State Tax Commission or Department of Revenue for any state income tax questions. Thanks!
FJB
While many comments here express the extreme frustration many Americans feel with the Social Security System and the blatant disassociation the federal government seems to have towards legal senior citizens, the amount of political ignorance is astounding. The partisanship of many of the commenters reveals to me a severe lack of basic understanding of how government works at every level. Federal, state and local. It certainly reflects the severe need for a vastly improved education system that is not geared towards party partisan indoctrination and controlled by federal government mandated curriculum aka propaganda.
Xena O.
Can’t believe after eons working long hours earnings now under ssa are abominable when you consider all the taxes and real estate taxes paid and inflation that now is out of sync and our country does not honor their seniors. Instead it continues to tax seniors and do cutbacks, higher prices, less services and crimes against senior citizens. Nothing is done to ascertain that seniors are viable and they continue to vote, and many do work. Yet we are taken advantage by many who perceive seniors as inferior and insignificant. Look around and see seniors working and being productive and contributed and continue to do so by paying taxes and real estate taxes and spending on goods and services. Many do not. There are many loopholes for the rich but none for seniors. Why! It’s about time there are loopholes for seniors who face higher bills, less services and have less funds. Try calling anywhere and see how many hours it takes to get through. A day wasted. An entire day – hours long and cuts made to their benefits including medical insurance. Look at the higher prices on everything now. No respect or consideration towards seniors. If you’re over 55 you are seen as inferior and insignificant. Meanwhile many are still very viable and worth it compared to other groups who take every chance to enrich their lives and do it dishonestly and don’t pay any taxes nor care to do so whatsoever! Why not go after these persons who draw a substantial wage and don’t pay one iota towards taxes. It happens every minute and these same persons get away with it making a ton of money and don’t ever contribute one penny towards taxes on wages that are substantial. Think how many get away with this and go after these freeloaders who do this unconcerned with the plight of the children, the sick, the homeless or seniors as they laugh all the way to the bank seeing others who pay taxes and barely exist! What is wrong with this picture and then tell me why seniors get a few extra bucks in their check. Then here comes the extras- higher prices and extra medical costs, higher utilities, food and necessities that are even more expensive including gas and transportation expenses. See how far a senior goes with all the extras added instead of giving seniors over 65 a bigger incentive for all the years of diligent work they put in and contributed to for many, many decades. Why offend seniors over 65 with more expenditures and less funds! Go after those who knowingly hide their wages to avoid taxes. Stop the treatment towards seniors by eliminating some of the costs they now have by giving them less taxes to pay after 65 so they can continue to be viable, self sufficient and not taxed for every single thing. Lower the taxes that seniors now are paying. Many deserve a chance after decades of contributions towards the USA economy by way of taxes paid and continue paying while their financial status dwindles because of inflation, taxes higher medical costs. Do something to alleviate the burden many 65 and over are dealing with. Don’t forget they say social security will end in a few more years. Think how bad it will be for those planning on retiring soon and will not be able to do so and have to work even after they are no longer able to do work. What will happen then? Does anyone have an answer because l would love to hear them, Eventually it will work out. And l thank God l survive each day despite all that is out there in the world of 2022.
Xena O.
PS — there are certain incentives for families with children and that is great and many still struggle with daily costs and child care and medical costs. However, there are fewer incentives available — less benefits for seniors particularly those who are past 65. One dollar or a couple off is not always much help. Don’t charge taxes on purchases by those over 65. Cut back on utilities prices for seniors and eliminate or reduce taxes on services that seniors over 65 need and use regularly. Vehicle maintenance and gas discounts and less taxes charged. This is a good incentive and more seniors over 65 will be able to do more if they pay lesser taxes and have bigger discounts. It will give seniors more freedom to do more and it will not make matters worse. Better than freeloaders who make substantial amounts and contribute zilch!
James H.
Social Security is Guaranteed Poverty for two classes of people.
Those who pay it and those who have to live on it!
K F.
You’re definitely on point. Senility does not necessarily come with age!
All I wanted to add is the FAKE raise in Social Security that seniors just received that was taken away with the HUGE $170 INCREASE that now comes out of Medicare.
Barbara
I worked & paid taxes 50 plus year, have spent 99% of my savings the last 7 years as my SS check doesn’t even cover all my rent so luckily I planned ahead & was able to pay for utilities & groceries …..forget about having $ for a night out now & then or a trip or vacation, now I fractured my shoulder & need some financial assistance & can’t get a dime & yes I am a born USA citizen with an excellent record
Pitiful, isn’t it?
wesley b.
exactly right, they can afford endless war, endless bailout of banks, but not social security? i call bull…
Willie B.
Well said, but as long as the wealthy politicians run this country we will never get a break. Most of them go in to get richer and most of them come out of office that way. They don’t need Ss so why should they care about us.
Dave
S.S. is my only income.. YES we all received a cost of living last year but as of today we are way over the cost of living last year.. With last years increase S.S. part A increase took all of it. If currently receiving $68.00 last in monthly payments from last year. As I’m sure many people in my income bracket will agree. We have paid TAXES all our working career so WHY do we have to pay Federal and State taxes.
Elisha T.
I am on disability
I get SSI and disability do I need to fill out a tax form?
A.C.
Hi, Elisha. 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.
Tom J.
Agree. Shouldn’t have to pay Federal income tax on Social Security earnings.
JIM E.
Totally agree. We’ve already been taxed on that income, now they’re taxing us on the tax.
But that’s not a problem for SSA. They’re just administering the law. We gotta vote smarter and get that vote changed.