Can You File Income Taxes on an SSI Check?

Supplemental Security Income is a tax-free benefit for those who qualify.

Anyone who earns or receives taxable income during the year is required to file an income tax return with the Internal Revenue Service (IRS) every year. If you didn't pay enough in taxes during the year, then you must pay the IRS what you owe at the time that you file; if you paid too much, you will receive a refund. There are sometimes certain benefits available to those who pay income taxes, prompting those who normally are not required to file to seek ways they can qualify for filing, in order to then receive these benefits.

About SSI

SSI, short for Supplemental Security Income, is a social welfare program that provides qualifying individuals with a monthly stipend to help cover their cost of living expenses. To qualify, you must be 65 years of age or older, legally blind, or permanently disabled. Your total income and other avenues of assistance cannot exceed a certain level. The income cap for SSI changes yearly, so check the IRS website to see what the current guidelines are.

SSI and Income Taxes

Income taxes must be paid by everyone who earned or received taxable income from any job or other source, including cash assistance from family and friends. SSI is specifically excluded from being classified as income, however, and therefore does not count toward your yearly income. If the only money you receive is SSI, then you do not need to file a tax return.

SSI and Other Benefits

Many individuals receiving SSI also receive additional benefits. Some of these benefits are also excluded as income. For example, Social Security payments are excluded. Other social welfare programs, like Temporary Assistance for Needy Families, do qualify as income, which means you will need to file a tax return if you are collecting it, but only for the taxable benefits that qualify as income for tax purposes.

SSI and Employment

Some individuals who receive SSI payments are also gainfully employed. Not only is this allowed, it is generally encouraged for SSI recipients who are able to work, though to continue collecting SSI, your total income must fall below the SSI limits. If you are working, you will need to file a tax return for your work income. However, you should not include your SSI payments as part of your income, nor should you state how much you received in benefits anywhere on your return.

Income Tax Benefits

A great many SSI recipients wanted to file a tax return in recent years, despite not qualifying to do so. This is because of the stimulus payments that taxpayers received as part of an income tax incentive. Stimulus payments, and similar benefits, are often offered to taxpayers to help alleviate the tax burden and boost the economy. It is important to note that these benefits are exclusively for those who pay income taxes. Since SSI recipients do not pay income taxes, they are not entitled to receive these stimulus benefits. Filing for income taxes on an SSI check for these purposes is not only impossible, it can be considered fraudulent.

References

• Cornel LLl: United States Code - Eligibility for Benefits
• SSA: Are Supplemental Security Income benefits taxable?
• SSA: Understanding Supplemental Security Income