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Do I Have to File Taxes If I Get SSI?

Supplemental Security Income (SSI) is a federal government program managed by the Social Security Administration. Funding for the program is received from tax revenues. Cash is provided to individuals to meet the basic needs of food, shelter and clothing. Disabled, blind or aged people, with little or no income, are generally able to receive such benefits. Disabled children are also eligible to receive SSI.

  1. Determination

    • If your total amount of resources (cash, stocks, real estate, life insurance) are less than $2,000 for a single person, you may be eligible to receive SSI payments. Your principal residence and car usually do not count when figuring resource amount. For a couple, the total resources must be less than $3,000. The Social Security office has strict requirements on reporting income and changes in your status. If you change banks or someone moves into or out of your household, you must report that change to the SSA. If your status changes from disabled, you will probably cease to be eligible for supplemental security income payments.

    Income Taxes

    • Supplemental Security Income is not taxable, in and of itself. However, any income you earn while receiving SSI is taxable at the current IRS income tax rates and you must then file an income tax return. You must report to the SSI office any wages or income you receive during each month. Should you have any questions on whether your SSI and related income is taxable, contact the IRS at their toll free number (800-829-1040) or your tax preparer.

    SSI Payments

    • In general, your SSI payments will be based on your earnings and income from two months prior. Generally, the amount of income may proportionally reduce your SSI payments. For example, you receive $400 from wages and $200 from SSI. During the month, you win $100 from a lottery. Your next SSI will be reduced by $100 for one month only. The following month, if you had no other reportable income, your payment will revert back to $200. If you have questions on your SSI payments, you should contact the Social Security Administration via their phone number (800-772-1213) or by visiting your local SS office.

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