October 12 – Tax Refunds and SSI
Question: I am working with a Supplemental Security Income (SSI) beneficiary who is going to get a federal income tax refund. Will that be counted as income or a resource for her SSI?
Answer: Any amount refunded on income taxes already paid is not considered income for SSI purposes. Additionally, the American Taxpayer Relief Act of 2012 (ATRA) excludes from income the portion of a Federal tax refund that is attributable to a Federal refundable and advanced tax credit received on or after January 1, 2010.
The ATRA also excludes all Federal tax refunds and advanced tax credits from resource counting for a period of 12 months after the month of receipt. All Federal tax refunds and advanced tax credits received after January 1, 2010 qualify for this 12-month resource exclusion. A list of common federal tax credits and advanced tax credits can be found at POMS SI 01130.676. The tax credits identified in that POMS represent only those seen most frequently by Social Security. The list is not exhaustive.
Would you like to find out more about WIPA and your benefits? Contact your statewide WIPA Program-Project 20/20 if you have questions like our Daily Tips or want to learn more about working while receiving social security disability benefits. Call our North Augusta office at 803-279-9611 or the Ticket to Work Helpline at 1-866-968-7842. You can also complete a Contact Us or Self-referral Form.