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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Mary A.
How do I change my withholdings
Glen
How do I change my tax deduction on my monthly benifit?
Linda
you need to fill out a W-4V and then send or take to your local SS office (find the form online https://www.irs.gov/pub/irs-pdf/fw4v.pdf)
A.C.
Hi, Glen. In order to have taxes withheld or to change your withholding amount from your Social Security benefit, you must start by printing, completing and submitting 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. We hope this helps.
Linda
you need to fill out a W-4V and then send or take to your local SS office (find the form online https://www.irs.gov/pub/irs-pdf/fw4v.pdf)
A.C.
Hi, Mary. In order to have taxes withheld or to change your withholding amount from your Social Security benefit, you must start by printing, completing and submitting 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. We hope this helps.
Gwendolyn W.
I need a copy of my Social Security benefits for 2020.
A.C.
Hi, Gwendolyn. Thanks for visiting our blog. It sounds like you are referring to the SSA-1099, a tax form Social Security mails each year in January to people who receive Social Security benefits. For years prior to the last year, you can call us at 1-800-772-1213 (TTY 1-800-325-0778) between 8:00 a.m. to 7:00 p.m. to speak to one of our representatives for assistance. You can also contact your local Social Security office. We hope this helps.
Donna C.
I understand there is an exemption from the “five-year-look-back” rule for Medicaid when I go into a nursing home if my daughter has provided all my care for 2 or more years which has kept me out of a nursing home during that time. She meets all the criteria except for “living under the same roof”. I purchased a small mobile home so she could live right next to my mobile home to care for me. My mobile home isn’t large enough for both of us and her cat is a safety risk for me. She spends her days with me and is available by walkie-talking at night. Does this still qualify me for the exemption? I could not stay at home if it wasn’t for the extensive care she provides for me.
A.C.
Hi, Donna.For information about Medicaid, you will need to call your state medical assistance office. To get the local phone number, call the Centers for Medicare & Medicaid Services at 1-800-633-4227 (TTY, 1-877-486-2048). We hope this helps.
Crystal k.
I earned under $1200 a month and am disabled. Is it true that anything under $25,00 you do not have to submit a tax return?
A.C.
Hi, Crystal. 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.
Carol
I am a survivor and will be claiming benefits on behalf of my late husband when I reach age 60 (July 2023). I am planning on retiring from State government (CalPers) same month I turn 60. Is there a waiting period after I apply to receive my monthly benefit? Also, I have vacation leave credits that will be cashed out when I retire. Will my cashout effect my survivor benefit for the maximum allowable? Should I wait to apply for SS until the end of 2023 because there is a earn income amount of $19,560 per year?
A.C.
Hi, Carol. Thanks for your questions. Benefits are paid the month after they are due. So, for instance, if you want your benefits to begin with the month of July, you will receive your first benefit payment in August. Typically, if you retire mid-year, we count your earnings for the entire year. We have a special earnings test rule that we apply to annual earnings—usually the first year of retirement. For more information, visit our Special Earnings Limit Rule page. We hope this helps.
Linda S.
I have lost my W2 and need a replacement
David M.
Contact your employer for a copy.
A.C.
Hi, Linda. Thanks for visiting our blog. For a copy of a W-2, you should contact your employer’s human resource or personnel office. If you are referring to the SSA-1099 showing the amount of benefits paid to SSA beneficiaries during last year, 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. 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.
Ida C.
March 11, 2022
I receive a small amount of social security and have a government pension. The social security income goes directly to pay the Medicare premium. Up until last year I received a 1099 Benefit Statement for tax purposes. I did not receive the 1099 this year and there is none on your website. I have talked to several agents at both Social Security and Medicare but have gotten no satisfaction. How can I pay my 2021 taxes if I don’t know the benefits received ?
Thomas F.
Tom F. I am in the same position as you and also can’t get any information.
A.C.
Hi, Ida. We are sorry to hear about your experience. 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.
kimberly L.
i am disabled and get $800(about i’ve been getting it for over 2 years and am 60 and divorced. is it true i can draw from his SS?
A.C.
Hi, Kimberly. To be eligible for divorced spouse benefits, you had to be married to your former spouse for at least 10 years, be age 62 or older, and you cannot be eligible for a higher benefit on your own record. For more information on how to qualify for divorced spouse benefits, visit our Benefits Planner. We hope this helps.
Sam K.
When do you turn in any type of income to SSI. Is it monthly or weekly
A.C.
Hi, Sam. Thanks for your question. Supplemental Security Income (SSI) recipients and deemors (spouses, parents, or sponsors of someone receiving SSI and working), and concurrent (Social Security Disability (SSDI) and SSI) beneficiaries may report wages for the month prior to the current monthFor more information about how to report your wages and how often you should report them, please visit our Frequently Asked Questions. We hope this helps.
Michelle W.
We are doing a home renovation project and would like to use some of my 401K money to pay for it. I know it will be counted as ‘income’ for the year 2022 next year when doing taxes. I want to be sure I do not exceed the yearly allowed amount of taxable income and if I take the money in one lump sum say $25,000. would that be counted as income that month and mess up my benefits?
A.C.
Hi, Michelle. Thanks for your question. When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you’re self-employed. We include bonuses, commissions, and vacation pay. We don’t count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits. For more information, please visit our Receiving Benefits While Working page. We hope this helps.