Some people need governmental aid beyond Social Security to meet their needs. The United States Treasury funds what is called Supplemental Security Income (SSI). 

SSI provides financial help to certain groups of people who have limited income and access to resources.

Many people are familiar with tax refunds and how they work. However, how does SSI affect your refunds? You might be wondering, can I get a tax refund on SSI?

This article will answer this question and provide more information on tax refunds.

Can I Get A Tax Refund On SSI?

Yes, you are eligible for tax refunds even if you are enrolled in the SSI. However, it is not a simple process, and the regulations about it are not simple either. 

First, it is crucial to have an understanding of what a Supplemental Security Income is. As mentioned, SSI is an income provided to certain groups of people in the American population to help meet their needs. 

SSI benefit is a type of income provided to those who are in need, including the disabled, the blind, and the elderly. If one qualifies, they will receive this additional income on a monthly basis. 

Am I Eligible for SSI?

Eligibility for SSI benefits is not always a simple process. To be considered for SSI benefits, you first need to become eligible.

You are required to show that your income is below a certain amount and that you have minimal assets. If you meet these requirements, you are most likely to be eligible for Supplemental Security Income benefits. 

But how exactly will this affect both Federal and State tax refunds? Or how will tax refunds affect SSI benefits?

How Does SSI Affect Tax Refunds?

First, it is important to know that the Social Security Administration, also known as the SSA, assesses your financial eligibility each month. On a monthly basis SSA checks on whether you qualify for SSI benefits. 

Receiving tax refunds will likely not cause you to lose your SSI benefits. But it may make the process significantly more complicated.

If you receive Supplemental Security Income (SSI), you will not owe any Federal or State taxes on this benefit. If you have other forms of income in addition to your SSI (such as wages) you may owe taxes on that income.

More on How Your Resources Affect SSI

Since the SSI checks your eligibility every month, you must not have any “countable resources” that exceed $2,000 each month. For couples, the limit must not exceed $3,000. 

This is known as the SSI Resource Limit. There are a few items that do not count toward SSI resources. For example, your home and the land you live on, one car, and household goods do not count as resources. 

Tax refunds are exempt from the SSI Resource Limit, so it is still possible for you to get both state and federal tax refunds even if you are receiving SSI benefits. 

However, there is a time limit on how long your refunds will not be factored into your resources. State and federal tax refunds are only exempted from your resources for 12 months. 

Additionally, child tax credits and earned income tax are also exempt for nine months starting from the date of the receipt. 

There you have it! As you can see, you can receive a tax refund on SSI as long as you continue to meet SSI eligibility requirements, however your eligibility becomes more complex after the 12 month mark.

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