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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Donald P.
I get SS and I don’t get very much I paid $2.836.22 in interest on my mortgage should I file
Stacy C.
You would be better off to call your local office and ask them. This way you can make sure you get the correct answer.
Vickie C.
If all I receive is SS do I have to file a claim since will not get anything back?
Real confusing when I’ve tried to Google it.
w r.
why the border pepole get free medical and house exspence and pay NO tax
Leonard A.
Because they’re smarter than you and they know how to spell?
Oh, I remember: Because it’s not true, they don’t.
Jan
You might want to do some research on that one.
Anthony S.
So everyone with SSI and no children get nothing? That seems a bit unfair.
Martha k.
does my L & I pension count as income with my ssi. I am 79 yrs. old or do i have to file return?
Howard A.
WHY CAN’T SOCIAL SECURITY CHECKS BE COMPLETLY TAX FREE.
Pedro d.
If you and everyone else did not pay taxes on Social Security, that would be a huge loss of income to the entire system. To make up for the loss, the federal government would either have to appropriate that amount of money (probably paid for by increasing the national debt), or Congress would have to make cuts in existing programs to make up the loss. In other words, nothing is free.
Patricia
Pedro,
If they didn’t borrow our social security funds and not pay them back there wouldn’t be a problem.
daniel b.
absolutely agree!!!!!
Kathy S.
It was Biden back in the 90s who was a proponent of taxing Social Security. I quote:
This change to the Social Security program was structured similarly to the 1983 change. It added another bracket to the income thresholds and increased the portion of benefits eligible to be taxed if recipients exceeded the second-tier thresholds. Under this bill, single recipients with income over $34,000 and married couples making more than $44,000 could pay income tax on up to 85% of their Social Security benefits.
The tax bill, which included several controversial changes, was highly partisan. Not a single Republican voted in favor of it.
Biden voted for the bill, along with the majority of his Democratic colleagues in the Senate.
Jan
Spot on! Besides, the “programs” that waste our money and need to be cut, if cut, would make an enormous difference.
Robin
So, the 40% that earn income and pay no income tax don’t increase the national debt or cause a huge loss of income to the system, just SS recipients that paid into the system?
Leonard A.
It used to be tax-free until Reagan started taxing it to give corporations a bigger tax cut.
vince s.
Max SS amount at full retirement is around 3,300.- Only HALF of SS is taxable. That’s about 19,800.- for the year. If you file jointly and stay below 32K, you don’t need to pay taxes on that either. Happy now?
A, R.
The federal government should stop borrowing from our social security. when they borrow the funds they need to pay it back plus interest. why are they just paying the interest and not the full amount. I say we need new leadership in the social security administration, out with the old bring new leadership. The high echelon in the administration needs to stand his ground, when something an right.
vince s.
Most people don’t have to pay taxes on their SS income. See my comments below.
Patricia
I agree. We paid tax on it once. We shouldn’t have to pay on it again.
vince s.
You are incorrect. When you contribute to SS, it’s with non-taxed money. When you receive SS, only half of it will be taxed. And if that “half” stays below a certain minimum, then that will be tax-free as well. So instead of pretending you’re being taxed double, it’s more like ONE HALF to NOTHING of your SS income that’s taxed. Stop spreading fake news.
Judy H.
I receive SSI and SSDI and need help finding out how to claim any tax benefit credit money? Can someone assist me I have a mental disability and need help?,
A.C.
Hi, Judy. 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.
Pat B.
I retired last year and my income was cut in half. The stimulus checks are based on 2020 income so I was not able to collect anything. Once my 2021 tax return is filed, will there be any adjustments to be able to receive any stimulus money. I could really use it.
Tysheen W.
I receive SSI. How I file ctc,?
vince s.
You can use a free online software like OLT.COM. I’ve been using it for years and they’re 100% legit. Simply enter all your information and the program will tell you if you need to file or not. Please note that in case to get tax credits (= not deduction, but real money in your pocket) you may want to file. Either way, the program is free and if you don’t need to pay taxes anyway, just file regardless and it will be a lot easier to get money back or get stimulus money.
A.C.
Hi, Tysheen. 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.
Karen C.
I believe you will get that if your income was not too high and you do not owe any taxes on the 2021 return.
A.C.
Hi, Pat. Thanks for visiting our blog. Please visit the IRS website for all your Economic Income Payment-related questions. If you are unable to find the answer, call the IRS hotline at 1-800-919-9835. Thanks!
Gary F.
How do i apply for this tax credit
Jan
On your tax return
vince s.
YES! Always file a tax return, even if you don’t owe taxes! Use free online software so you’ll be in the system for stimulus checks as well.
A.C.
Hi, Gary. Thanks for visiting our blog. Please visit ChildTaxCredit.gov and read IRS Filing Season 2021 CTC Questions and Answers if you have questions. Learn more about the EITC, including basic qualifications, at the IRS’ Earned Income Tax Credit webpage. Social Security can’t answer CTC or EITC questions. We hope this helps.
Astrid K.
I am very confused about the impact of excluded foreign earned income on the amount of taxable SS. The IRA interactive assistant treats it as income, even though is is excluded, the paper form adds it in and then takes it out again. Do you have any advice? The difference for us is huge, $4 vs. $2700 in tax refund.
A.C.
Hi, Astrid. 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.