MFJ and SSI

[nwtaxlady]

New client and husband works making $60K and wife says she is on SSI. I asked for her statement and she said she didn't get one. I looked at last years return and nothing was reported on the SS line and I looked at 2016 and the prior preparer had put the SSI on the 1040 and some of it was taxable.

I am confused. Do I need her SSI income to prepare the tax return? Or not because it is SSI and not social security?

[Twin Turbo Z]

SSI or SS Disability ? Dont see how she can get SSI with her husband making 60k !! If its disability then yes it is re-portable

[New York Enrolled Agent]

Social Security says:

WHEN DOES DEEMED INCOME APPLY?

When a person who is eligible for SSI benefits lives with a spouse who is not eligible for SSI benefits, we may count some of the spouse's income in determining the SSI benefit.

[Burke]

I am confused. Do I need her SSI income to prepare the tax return? Or not because it is SSI and not social security?

SSI income is treated the same as Social Security retirement benefits. It comes into play on the tax return. Whether it is taxable or not depends on other income.

[Maude Lebowski]

SSA-1099s are not issued for SSI, and it is never taxable. SS Disability may be taxable because it is treated just like regular SS benefits for income tax purposes.

https://www.irs.gov/faqs/social-security-income/regular-disability-benefits/regular-disability-benefits

[TaxGuyBill]

SSI income is treated the same as Social Security retirement benefits. It comes into play on the tax return. Whether it is taxable or not depends on other income.

"SSI" is Supplemental Security Income, which is for dirt-poor people and it is not taxable.

However, many people incorrectly use the term "SSI" when referring to regular Social Security benefits (which are potentially taxable).


So the first step is to confirm WHAT the payments actually are. Contacting the Social Security Administration about it may be a good idea. If it shows up on a Transcript on a SSA-1099, that is 'regular' Social Security (potentially taxable). Supplemental Security benefits (not taxable) do not show up on a SSA-1099 or any other tax form (but the Transcripts may not be updated yet, so if it does not show up on Transcript it does not necessarily mean it is non-taxable SSI).


As TwinTurbo and New York Enrolled Agent pointed out, it seems unlikely that it is non-taxable Supplemental Security Income because the husband has a large income. So I highly suspect that it is actually 'regular' Social Security benefits, and the taxpayer just did not receive the SSA-1099. Contacting the Social Security Administration and/or logging into their account should solve the problem.

https://faq.ssa.gov/en-us/Topic/article/KA-01723

.

[Dude]

SSI is also for people with a disability, unlike workers comp you can work while receiving it. IMO a very much abused program but that is neither here nor there.

[Twin Turbo Z]

Yes people dont confuse SSI and SSDI.

[Dude]

Yes people dont confuse SSI and SSDI.

like SSA does https://www.ssa.gov/benefits/ssi/

[Twin Turbo Z]

like SSA does https://www.ssa.gov/benefits/ssi/

They are confused !!!

[nwtaxlady]

"SSI" is Supplemental Security Income, which is for dirt-poor people and it is not taxable.

However, many people incorrectly use the term "SSI" when referring to regular Social Security benefits (which are potentially taxable).


So the first step is to confirm WHAT the payments actually are. Contacting the Social Security Administration about it may be a good idea. If it shows up on a Transcript on a SSA-1099, that is 'regular' Social Security (potentially taxable). Supplemental Security benefits (not taxable) do not show up on a SSA-1099 or any other tax form (but the Transcripts may not be updated yet, so if it does not show up on Transcript it does not necessarily mean it is non-taxable SSI).


As TwinTurbo and New York Enrolled Agent pointed out, it seems unlikely that it is non-taxable Supplemental Security Income because the husband has a large income. So I highly suspect that it is actually 'regular' Social Security benefits, and the taxpayer just did not receive the SSA-1099. Contacting the Social Security Administration and/or logging into their account should solve the problem.

https://faq.ssa.gov/en-us/Topic/article/KA-01723

.

I asked her for the 1099-SSA form and she said she didn't get one. She called social security and they told her because it is SSI that she does not get a form and its not taxable.

It just seems odd to me that her husband's W-2 is like $79K and she gets this. I can see it if she got Social Security Disability then yes, but if SSI is for dirt poor people something is fishy here, but then again I don't know all the social security rules.

I think I will have her write me a statement saying that she receives SSI and tried contacting them to get the form what she was told.

[Twin Turbo Z]

Very fishy. I would pass on them.