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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LAWRENCE D.
Why can’t I log in to my SSA account? I can understand that Soc Sec is understaffed and can’t take a hone call. But I can’t log in? And the message just says the servce cannot log me in? Do I have the wrong passwaord? I could but the system does not tell me that.
This is the epitome of bad service
A.C.
Hi, Lawrence. We are sorry to hear that. If you are still unable to access your account or encounter a problem with your personal my Social Security account, please call us at 1-800-772-1213 (TTY 1-800-325-0778), Monday through Friday from 8:00 a.m. to 7:00 p.m. At the voice prompt, say “help desk.” We hope this helps.
Elaine
Why can I not file my W-4V on-line? I have to Mail or drive to an office. It is amazing, I can apply, set up Direct deposit on-line, but I can’t change my withholding.
Eugene H.
What is the limit on earnings for a retiree? What about stock s
Jeanett R.
I would like to know how much earnings a retiree of 74 years old is allowed.
I would like to know how does the SSA figure your retirement benefits. They say they average your lifetime earnings, but what do they use to average your earnings: how many years old you are at retirement; how many years you worked or some other figure?
Tom M.
It depends on the year you were born, how many years worked and whether you retire earlier or later than your “official” retirement age (but no extra benefits after age 69 it seems). Income averages are weighted a bit more towards the last ten years you worked because this tends to be when someone has earned the most. This might help but it would be easier to create an account and log in.
https://www.ssa.gov/benefits/retirement/planner/AnypiaApplet.html
A.C.
Hi, Jeanett. Thanks for your questions. Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn. We use the highest 35 years of earnings to compute an individual’s benefit amount. If the individual does not have 35 years of earnings, we will use all of the earnings on the record. We will factor in an annual total of $0.00 earnings for each of the remaining years. Your payment amount is based on when you decide to start your benefits, once you have reached your age of entitlement. For more information and what to consider when planning for retirement, visit our Retirement Benefits Planner page. We hope this helps.
A.C.
Hi, Eugene. If you are receiving retirement benefits, younger than full retirement age, and earn more than the yearly earnings limit, we may reduce your benefit amount.If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2022, that limit is $19, 560. In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2022, this limit on your earnings is $51,960. We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.
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.
Elizabeth B.
Hello, I have been on hold for a least 2 hours for 2 days. I need to know the form to withheld taxes from my SSA, can some please provide an answer.
Dee
W-4V. A voluntary withholding Request you can download it from Social security or IRS. Gov form W-4V
A.C.
Hi, Elizabeth. We are sorry to hear that. In order to have taxes withheld 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.
Kathy S.
My husband receives Social Security Disability of $1600 per month. I used Turbo Tax to complete our tax return last night, and we owe $2,500!! No taxes are taken out of my husband’s SS payments. How do I change that? He makes below poverty level, and we still owe thousands to the IRS. This doesn’t sit well with me.
A.C.
Hi, Kathy. In order to have taxes withheld from your husband’s Social Security benefit, he must start by printing, completing and submitting an IRS Voluntary Withholding Request Form (Form W-4V). On this form, he can choose to have 7, 10, 12, or 22 percent of his monthly benefit withheld. The Form W-4V (to withhold federal taxes from his Social Security benefits) can be returned to his 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.
Kathleen
I’m retired; over 66; I’ve gone back to work. Will my Social Security benefit increase?
A.C.
Hi, Kathleen. Thanks for your question. Each year we review the records for all working Social Security recipients to see if additional earnings may increase monthly benefits. If your earnings for the prior year are higher than one of the years we used to compute your retirement benefit, we will recalculate your benefit amount. Generally, we will send a letter explaining any increase in your benefit amount. For more information, visit our Receving Benefits While Working. Please call our toll-free number at 1-800-772-1213, Monday through Friday, from 8:00 a.m. to 7:00 p.m. or contact your local office directly for further assistance. We hope this helps.
Charles J.
Dear Ann: Please kindly respond to my March 10 query.
Nitin
Can I claim $3000 for my kids if I got their SSN in Jan 2022 (tax is being filed for 2021).
A.C.
Hi, Nitin. 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.
Kenneth H.
I have, up until now, received all the information needed from my online account with SSA.gov, but now I have two questions that aren’t addressed in the “online” system. Unfortunately, the request for Call-Back telephone feature simply says CLOSED in red letters. But also the offices are closed to the public! This leaves only 1 option, ie calling the “800” number. But there is no time estimate provided while on music hold. I’ve been on music hold now for 48 minutes, and I will have to leave soon. What are we supposed to do? How do people get through actually? If all the offices are closed to the public, wouldn’t that free up a lot of SSA personnel for phone contacts? Or were they laid off? Seems like after two years, there would be a solution in place? Any ideas? Also, why is the call back option discontinued?
dobie
I know I’m late to the parade here, but perhaps the thought was to stimulate the economy, as it begs the need of having to ‘hire’ someone to ‘man’ your ‘on hold’ phone, when absolutely necessary. Just a thought.
A.C.
Hi, Kenneth. 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.
We respond to questions and provide general information on our Retirement, Survivors, Disability, Medicare and SSI programs. If you have a general question, we encourage you to ask here. But remember, never post personal information on social media.
Finally, we continue to provide help in our offices by appointment only. In early April, local Social Security offices plan to add more in-person appointments and will again offer in-person service for people without an appointment. We have not set an exact date in April. Visit How to Get Help from Social Security to learn more, including what to know if you need to visit an office. We hope this helps.
Dolores C.
My Husband has not yet received the SSA-1099 form for 2021. We moved out of state the end of 2020. How do we obtain this form for doing our
taxes for 2021.
Dan v.
Go to https://www.ssa.gov/myaccount/replacement-SSA-1099.html and login then you can download the statement. If you do not have a login register for an account then follow the attached link.
LARRY A.
i need an ssa-1099–have not recieved-need it for taxes-can not sign in to ssn. is there a phone # to get help?
A.C.
Hi, Larry. We are sorry to hear that. 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.
A.C.
Hi, Dolores. Thanks for your question. If your husband is receiving Social Security retirement or disability, he can create a personal my Social Security account to change his address online. If for any reason your husband has not received his SSA-1099 in the mail, he also can request a replacement SSA-1099/1042S for Tax Year 2021 by visiting his 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. He 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 he’s requesting a replacement SSA-1099. We hope this helps.