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
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Robert
I have an adult disabled son who receives SSI. He has been ask at a local YMCA to work a few hour per week.
How much can he earned before His benefits are impacted?
Sheila
During the trial work period, there are no limits on your earnings. During the 36-month extended period of eligibility, you usually can make no more than $1,350 ($2,260 if you are blind) a month in 2022 or your benefits will stop. These amounts are known as Substantial Gainful Activity (SGA).
Sheila
Social Security excludes the first $65 in earnings and one-half of all earnings over $65 in a month. The earned income exclusions mean that in 2021 a person can earn about $1,650/month and still qualify for SSI (though the monthly payment is reduced when you have countable income).
K.O.
Hi Robert, thanks for your question. We have special rules that make it possible for people with disabilities who receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) to work and still receive monthly payments and Medicare or Medicaid. Social Security calls these rules “work incentives.” Some work incentives allow us to exclude some income and resources. For SSI recipients, for example, we do not count the first $65 of the earnings you receive in a month, plus one-half of your remaining earnings. This means that we count less than one-half of your earnings when we figure your SSI payment amount. Click here to see examples of the “Earned Income Exclusion”. Learn more about our other work incentives in our Red Book.
If you receive SSI, you must tell us right away when you start working, and you must report your earnings each month. This will help us avoid overpayments and underpayments. For instructions on the various ways to report your work, see Reporting Wages When You Receive Supplemental Security Income. If you need to contact your local Social Security office, you’ll find the phone number using our Office Locator. We hope this information helps.
Cecille E.
My husband and I did not get the 2021 1099-R
from Social Security. How do we get one?
Mary F.
I didn’t receive 2021-1099-R how do we get one .
K.O.
Hi Mary, thanks for using our blog. You can request a replacement SSA-1099/1042S for Tax Year 2021 by visiting your 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. You may also 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 he’s requesting a replacement SSA-1099. We hope this helps.
patricia J.
my husband is Robert Judge.
A.C.
Hi, Cecille. If for any reason you have not received your SSA-1099 in the mail, you can request a replacement SSA-1099/1042S for Tax Year 2021 by visiting your 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. You also may be able to request a replacement SSA-1099 by using our automated telephone service at 1-800-772-1213. Our automated services are available 24 hours a day. At the prompt, indicate that you’re requesting a replacement SSA-1099. We hope this helps.
Eddie B.
I just want to sign up for social security. Why is it so difficult???
A.C.
Hi, Eddie. We are sorry to hear that. You can visit our Online Services to apply for benefits. Limited appointments are available now if you can’t complete your business online and if we cannot help you completely by phone. We anticipate increased in-person service in early April. Customers who walk in without appointments may encounter delays. We hope this helps.
Manuel
I need help, I don’t know anymore things have changed so much. It was so simple back then. All I can say is what I get for disability is not enough for me to move on I’m living with my daughter trying to say now they only allow you to save $2,000 how far is that going to get you if you can save that that would take me 20 years and I’m almost 60
Patricia R.
I am on Medicare Advantage UHC. My latest SSI statement shows a deduction of $170.00, I understood that is why I went on medicare advantage. What is this charge for?
Terri
The $170 is your Medicare Insurance payment to the government. It covers your catastrophic care I believe. The Medicare Advantage covers everything that Medicare doesn’t cover. Some have higher/lower deductibles. The Medicare Advantage is insurance on your insurance, BUT does not cover any medications once you reach the “Donut Hole”. Once you have paid $6500.00 in medications, they then cover 100% of medications.
I’m on SSDI, so this is just my understanding. Someone please correct me if i’m wrong.
Roger S.
The Donut Hole has 25% copay on covered scripts while you are in the Donut Hole. Getting out, now, is approximately $7400. The 75% you do not pay also counts toward getting out of the Donut Hole. Once out, script co-pays drop to under $5 for covered generics and under $10 or 5% (whichever is greater).
Margie a.
Medicare covers doctor visits, hospital, er, prescriptions. I doesnt pay at 100% but it pays. Most prescriptions are $5.00 or under until you reach the donut hole.
Its a good idea to get a supplemental policy, even if it is the free polcy. I have ateham. PCP are free with my plan, specializing doctors are $30.00. ER is 90.00. After you meet out of pocket you never see another bill.
Roger S.
That is your Medicare Part premium. You must have Part B to stay in your Advantage Plan
You should check on Medicare.gov to see if you qualify (low income) go have the Part B premium paid for you.
Margie a.
If income is very low you qualify for healthy med abd prescriptions are not above $3.95. I dont know if they continus after you reach the $4900. donut hole.
K.O.
Hi, Patricia. Thank you for using our blog. Unfortunately, your situation is a bit more complex than we can handle in this forum. Please 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.
Ramona J.
I was unable to find the info I need for my taxes. I didn’t want to spend extra money to find out about the amount I am required to take out annually . I really need to know how I report I did not pay it last year ,I thought I didn’t have to because of COVID.
Terri
We have SS take out 25% of our monthly payment for taxes. It’s as if we don’t need the money, I guess, can’t we all live on $1000 each month? Our rent appears to just go DOWN each year instead of up, or that is just what the government wants us to think. How the heck you we live on $1000/month?
Nancy
SS was never created or intended to be ones sole retirement income source. It was only designed to be a supplement to a retirement income source. If your only income is SS, and it is $1000 per month ($12k annually) you are not required to file a tax form 1040 – you are below minimum requirement ( I believe is $18k or less annual income). With the standard deduction on a form 1040 (2022) set at $12,550 ($25,100 joint), no tax is due. Again, why are you deducting 25% from your SS? Side note: some states don’t tax SS income – like Arizona.
K.O.
Hi Ramona. It sounds like you are referring to voluntary tax withholding. To have taxes withheld from your Social Security benefit, you will need to print, complete and submit an IRS Voluntary Withholding Request Form (Form W-4V). On this form, you can choose to have 7, 10, 12, or 22 percent of your monthly benefit withheld. The Form W-4V (to withhold federal taxes from your Social Security benefits) can be returned to your local Social Security office by mail. See our Benefits Planner: Withholding Income Tax From Your Social Security Benefits web page for more information. 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.
Sunny T.
Very helpful & easy to navigate.
Steve H.
I’m on ssdi and wanted to rent a room out in my house. I am confused if it will change anything or if there are limits on rent received?
Mark R.
Your Tenant should not be able to Claim Rent on his or her Taxes, at the end of year. Rent has not been deductable on Tax Returns for many years. If you listed it as income it will confuse the IRS & if expecting any return it will be held up.
EX: I had a SUV that was 15 years old. I accidentally listed it as an asset. It was a stupid error on my part. My State did take notice and my error caused me total chaos. No one in the Dept. of Revenue understood, nor did Social Security. FYI ONLY: Do not list this as income. I’d you try to list any repairs or changes it will be a headache.
Therefore, your income will not change.
skeezo
cash only
K.O.
Hello Steve. Thank you for your question. If you are receiving Supplemental Security Income (SSI), there are times when SSI benefit determinations are affected by an applicant’s living arrangement. To understand how the Supplemental Security Income program works, visit our Understanding Supplemental Security Income Living Arrangements webpage. Your living arrangement will not affect your eligibility for Social Security disability benefits. We hope this helps.
Sandy G.
I receive SSI and I was wondering if I should file income taxes I would be filing single I don’t have any children and I’m not married. My income is less than $20,000 a year thank you
K.O.
Hello Sandy, Thank you for using our blog. You will pay tax on only 85 percent of your Social Security benefits, based on Internal Revenue Service (IRS) rules. If you:
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.
Marsha
I have been working with the local office but cannot reach them. I was assessed the IRRMA up charged on Medicare premiums because my income was inflated due to someone fraudulently filing a return under my SSN. IRS has confirmed the fraud and removed from my records the extra earnings. I provided my local office with the required documentation to appeal the surcharge and it was adjusted (only back to March,2022- why not Jan,2022??). Will I get a refund for the erroneous upcharge deducted from my Jan and Feb (have not received March yet) payments?
A.C.
Hi, Marsha. We are sorry to hear about your experience. 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. Please be aware our call volume is higher than normal. We hope this helps.