This Tax Season, Social Security Recipients Should Be Aware of These Two Credits| Latest Updates!

Because of the stimulus bill passed last year, you may be eligible for tax credits and rebates that you would not otherwise be eligible for.

This is especially true this year because of the tax credits and rebates you may be eligible for as a result of the stimulus law passed last year.

These unique benefits are available to you regardless of whether you get Social Security Supplemental Income and/or whether you earn insufficient income to file a tax return — or whether you choose not to submit one at all.

If you receive SSI or Social Security benefits, here are the two most important credits to keep an eye out for this tax filing season.

The Child Tax Credit is a federal tax credit that is available to families with children under the age of 17.

The child tax credit was increased to $3,600 per eligible child under the age of six and $3,000 per eligible child between the ages of six and seventeen as part of the stimulus relief legislation.

The advance monthly portions of this credit, which account for half of the total credit, began to be distributed to families in July 2021 and were paid out through December 2021, with the other half of the credit becoming accessible now, during tax filing season.

It is not necessary to worry if you did not claim this credit last year; you may just claim it today, but it may be referred to as a rebate credit depending on what you claimed the previous year.

Social Security

According to a blog post published by the Social Security Administration, your child tax credit payments will have no impact on your Social Security income.

If you receive SSI, any child tax credit you receive, including any advance payments received in 2021, will not be counted as income or resources for the first 12 months following your receipt of the credit when determining your income eligibility for SSI benefits.

This means that the Social Security Administration wants to see evidence that you required the money and were not merely stashing it away in a bank account.

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The Earned Income Tax Credit (EITC) is a tax credit for people who earn an income.

The Earned Income Tax Credit (EITC) provides low-to-moderate-income employees and families with a variety of program-specific tax benefits.

Use of the credit can be used to reduce the amount of tax you owe to the IRS, which may result in an increase in your overall tax refund. Similar to the CTC, your eligibility for the EITC is determined by your income and the number of qualified dependents you have.

If you receive Social Security or Supplemental Security Income, you can still qualify for the EITC as long as you meet the eligibility requirements for the program. If you have a child who has a disability, you may be able to claim the EITC in some cases.

Benefits from Social Security and Supplemental Security Income (SSI) have no impact on one’s eligibility for the EITC.

Your disability insurance or Supplemental Security Income (SSI) payments may be considered earned income for the purposes of the EITC, but this will depend on a variety of criteria.

The first step in claiming the EITC is to ensure that you file a tax return for the year 2021.