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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Richard
I believe this is double taxation. We paid taxes for SSI and if we work to build a nest egg we are taxed again. Just another way government is crippling the working class citizens.
LB
what does this have to do with Social security or any of the subject matters covered on this website – crazy!
Frustrated
I have been trying for weeks to secure an appt. at the Social Security office in April once they open again in chicago. There is not any way to even have anything but an ibot answer and then hang up, saying there is no one to answer.
What to do, as I was told previously by social security to make an appt in person asap!
Sue H.
Is R.buckler11 a psychotic, er, psychic 🔮 or supposedly a medium? You’re nuts and your story. (and that’s all it is), is a ruse. Most likely, you are r.buckler11 advertising for yourself.
Shawon E.
This is not a comment about your taxes. Come on people are reading this.Keep you man on a leash!!!!!!!
Shirin C.
I would have kicked him to the curb & tell the loser where to go. I work hard & bought my own car! No handouts…
Sue H.
I don’t have any more children, and will never qualify for the CTC, EITC. Will you please concentrate more on the things that might benefit people like me instead of the cows who have broods every year so that they can live off of the fat of the land for free?
Shirin C.
I am with you. More you produce the better the money, coming out of tax payers like you & I. Those cows most likely hasn’t paid a dime into the system & they never will. They have the, “you owe me attitude”. I say, Hell NO! Get off your butt, work & pay. I wish there was a system to penalize after 2 babies or mandatory castration…
arturo v.
i live only with my retirement benefits, no other income, do i need to file taxes??
A.C.
Hi, Arturo. 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 information is helpful.
C K.
Is that gross income (before deductions) adjusted gross income (after standard deductions) or net income (after completing the entire form? For example, if your combined gross income is $40,000 (used only for this example)and your standard deduction is $27,000 is the subsequent $13,000 (adjusted net income) what is considered taxable and falls under the “no taxes due”. I can see where Arturo is confused. I have done my taxes since I was 18 years old. I have been doing electronic for a decade. This year I try to file online and everything says my income is $0 and won’t finish the process. I tried two different conpanies, same issue. I am assuming this is because of the final net income, as this is the first year there was not any W2 income, just SS income. We have enough to worry about without additional frustration because of legaleze frustration.
Ellis
What about “adult disabled children” or in other words an adult who is drawing off of their parents retirement benefits because they have been permanently disabled since before age 22? I saw somewhere that we are eligible for the EITC, too, but only if we are claimed as a dependant by someone else? I can’t however verify legitimacy of this claim anywhere on the social security website, or find out how I would go about doing this? Please help!
A.C.
Hi, Ellis. Learn more about the EITC, including basic qualifications, at the IRS’ Earned Income Tax Credit webpage. Social Security can’t answer EITC questions. Thanks!
Connie
I am working part time due to the Pandemic. I get social security, retirement and my income from part time work. Since the tax chart changed for the first time I owe money. Do I have to count my social security and part of my income, is there not a special break for those working the Pandemic.
A.C.
Hi, Connie. Thanks for your question and 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 information is helpful.
Gary E.
Thank you for all of your service.