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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Nan
I saw something about a surviving spouse one time benefit of just over $200. Is that automatic or musst I request it? Does it go in my automatic account like the monthly check?
Jane S.
Just went through that, you have to call or go online to fill out application to collect the $285.00 death benefit from SSI
A.C.
Hi, Nan. It sounds like you are referring to the Lump Sum Death Payment. The Lump-Sum Death benefit of $255 (a one-time payment) may be payable upon the death of a person who has worked long enough to be insured under Social Security. An application for the Lump-Sum death payment must be submitted within two years of the insured person’s death. In addition, only eligible family members may be able to receive the one-time payment and monthly survivor benefits. For more information on this, please read How Social Security Can Help You When a Family Member Dies. We hope this helps.
Gerald N.
My social security statement for 2021 has not arrived and it is needed for income taxes. We have moved several times this year and fear it has been lost. My wife has hers. How do I get a statement asap?
Ed A.
You can print it out online. If you don’t already have an account, you can create one.
Marilyn O.
What if I don’t have the ability to print it out?!?
Paper please!
Marilyn Olsen
Bonster
Marilyn, go to the library closest to you and explain that you need help and a printer.
Jan
I’m pretty sure you can notify the SSA and they will send you a new one.
vince s.
You don’t need to print it out. Just write down the numbers on the form on your screen. Or if you absolutely want a copy for your files, you can print to a PDF file. Again, you do NOT NEED a copy of it.
A.C.
Hi, Marilyn. 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. The automated services are available 24 hours a day. At the prompt, indicate that you’re requesting a replacement SSA-1099. We hope this helps.
A.C.
Hi, Gerald. We are sorry to hear that. If for any reason your wife has not received her SSA-1099 in the mail, she can request a replacement SSA-1099/1042S for Tax Year 2021 by visiting her personal my Social Security account. For additional information on how to request a replacement SSA-1099/1042S for Tax Year 2021, check out our Frequently Asked Questions. She also may be able to request a replacement SSA-1099 by using our automated telephone service at 1-800-772-1213. The automated services are available 24 hours a day. At the prompt, indicate that she’s requesting a replacement SSA-1099. We hope this helps.
Jean S.
My adult son is disabled and receives SSI Medicaid. Is he allowed to work part time without losing benefits?
A.C.
Hi, Jean. For information and examples about how work affects his Supplemental Security Income (SSI) benefits, please visit our Supplemental Security Income (SSI) page. We hope this helps.
Belva G.
How do you calculate how much you pay for medicare supplemental insurance premium will be
vince s.
If you don’t travel and can stay within a network, I recommend you go with a Medicare Advantage plan instead. Supplemental medicare insurance (AKA “gap” insurance) is very expensive.
A.C.
Hi, Belva. It sounds like you are referring to a Medicare Supplemental Insurance (Medigap) plan. For more information about Medigap policies and how to compary the costs, please visit Medicare’s website. We hope this helps.
Francisco J.
My wife needs to update our address for the tax report for 2021. My Form 1099 shows the right address, but not my wife’s form 1099. Been calling and no success.
cbb
you can change it online
A.C.
HI, Francisco. We are sorry to hear about your experience. We are currently having problems with our phone lines. You may experience service issues, including poor call quality, dropped calls, and long wait times. We sincerely apologize for any inconvenience and we appreciate your patience. To ensure your wife’s address is correct on her account, she can create a personal my Social Security account to change her address online. She can also request a replacement SSA-1099/1042S for Tax Year 2021 by visiting her personal my Social Security Account. We hope this helps.
Eleanor j.
I submitted a form which you sent me for a payment arrangement, but I just received a letter from you stating that I will not receive any social security payment this month March 2022 , I cannot get through to anyone at your main tel number or my local Boston office where the agreement was reached! Please get in touch with me .
Thank you
A.C.
Hi, Eleanor. We are sorry to hear about your experience. We are currently having problems with our phone lines. You may experience service issues, including poor call quality, dropped calls, and long wait times. We sincerely apologize for any inconvenience and we appreciate your patience. For your security, we do not have access to private information in this venue. We encourage you to continue to work with your local office. We hope this is resolved soon.
Paul T.
I have same question about SSDI. My daughter just starting receiving it at the end of 2021. Do we need to file a tax return for her, and can we still claim her as a dependent? We supported her more than 50% .
vince s.
If she didn’t support herself for at least 50% (as you said), she can legally be claimed as an independent and be added to your tax return. Of course, there are other requirements (e.g. did she live with you for # number of months, her age,… stuff like that), but I obviously can’t go into all the details here.
A.C.
Hi, Paul. 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.
jbc
I see a lot of questions but no answers? Does SS get back to you?
Feletia
No they never answer phone and there record keeping need little to nothing. My son was receiving SSI and now that he is grown. They sent me a letter stating that I didn’t have to repay the outstanding balance. Now they are seeking recovery from both my benefit SSI SSDI and I don’t owe them anything.please everyone whenever they send you a letter please keep it in your records. Because they seem rely on what that computer said.
lorena F.
The child tax credit is great. What about when you have an adult child who is disabled that a parent takes care of. My daughter for instance , I spend so much extra money on over the counter items for her health. Medicaid does not pay for it.
A.C.
Hi, Iorena. 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.
K h.
Does everyone have to pay taxes on SSDI or am I only special one?
Feletia
They told me if I wanted to I can have taxes taking out of my benefits
vince s.
Googled it for you: As of 2020, SSDI payments are considered taxable for individuals who have over $25,000 in yearly income or married couples with over $32,000 in yearly income.
You’re welcome.
A.C.
Hi, K. 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.