The Supplemental Security Income (SSI) is not subject to taxes
The Supplemental Security Income (SSI) is government assistance
The Supplemental Security Income (SSI) is considered government assistance, which means it is not subject to taxes. Similar to social assistance benefits, it does not need to be reported on a tax return.
The Supplemental Security Income (SSI) is needs-based
The Supplemental Security Income (SSI) program is a needs-based program. It benefits disabled individuals, including the blind, and those over the age of 65 whose income and resources are below certain limits. The program aims to cover an individual’s basic needs – shelter and food.
Taxes on retirement benefits versus Supplemental Security Income (SSI)
The IRS distinguishes between retirement benefits from Social Security and Supplemental Security Income (SSI) payments – SSI benefits are not taxable, but taxes may be imposed on retirement benefits. Retirement benefits may sometimes be completely non-taxable, but it depends on your other income sources.
Reporting income to the Social Security Administration
Although SSI benefits are not taxable, you must report all your income sources to the Social Security Administration (SSA) if you are receiving SSI benefits. However, you do not need to report SSI income to the IRS. The distinction is not about whether benefits are reportable, but about who and why they need to be reported.
Types of income to report
According to the Social Security Administration (SSA), reportable income includes all money coming into your home, including money you or your spouse receive. If your wages increase or decrease, you must report that, in addition to receipts for work-related expenses related to your disability. There are some income sources that the SSA excludes from consideration regarding eligibility, such as rental assistance.
When to report income
You must report any changes in your income, such as starting or stopping work. Notify the Social Security Administration (SSA) on or before the 10th day of the month following the change. For example, if you started a new job on October 17, you must report it by November 10 at the latest.
How to report income
You can call or visit your local Social Security office or call the main toll-free number at 1-800-772-1213. There are also phone and online tools for reporting wages for Supplemental Security Income (SSI).
Frequently Asked Questions (FAQs)
Do you need to file a tax return if you are on Social Security? Whether you need to file a tax return if you receive Social Security depends on whether you have any additional income and how much it is. If you only receive Social Security with no other income, you may not need to file a tax return. If you have other income, that income in addition to 50% of your Social Security benefit will determine whether you need to file a tax return.
Do you need to file a tax return for retirement income? Social Security benefits for pensions follow the same rules as Social Security retirement benefits when it comes to filing and paying federal income taxes. If you only receive retirement benefits from Social Security, you may not need to file a tax return. If you receive income in addition to your disability benefits, you will need to file a tax return if your income plus 50% of your benefits exceeds certain levels.
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Source: https://www.thebalancemoney.com/supplemental-security-income-is-non-taxable-income-3973981
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