As the 2024 tax season approaches, SSI beneficiaries may ask if they must submit a return. Although there’s no right answer, certain factors can help decide whether to file.
Understanding SSI Taxes: Benefits and Considerations for Recipients
Taxes and earned income don’t apply to SSI benefits. SSI helps low-income and disabled people.
There are benefits to filing taxes, even though it’s optional. While SSI benefits are not taxable, filing may qualify recipients for other tax credits, increasing cash. Receivers may qualify for the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC), offering further financial support.
The CTC gives qualifying parents of children under 17 up to $2,000 per kid, depending on income. The EITC is a tax credit for low-to-moderate-income earners that may reduce or refund taxes.
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Tax Season: Benefits and Considerations
Claiming these credits may delay tax refunds, but the financial rewards may outweigh the delay.
Social Security recipients can check their 2023 SSI payments in a letter. SSI and Social Security recipients will receive a letter in January 2024. Since SSI is tax-free, the Social Security Administration may not send a letter to SSI recipients. For assistance, recipients can call the administration or visit a Social Security office.
SSI recipients can make informed tax season decisions regarding filing and receiving additional financial support by understanding these issues.
READ ALSO: Should SSI Recipients File a Tax Return? What to Know
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