Social Security Might Not Be Enough: If you’re relying solely on Social Security benefits to make ends meet, you’re not alone. Millions of retirees and low-income Americans count on Social Security as their main source of income. However, Social Security might not be enough to keep you financially secure—especially with rising living costs, inflation, and unexpected medical expenses. But here’s some good news: filing a 2025 tax return could actually help you get more money back in your pocket through programs you might not even know you qualify for.
Many people believe that if their income is too low, they don’t need to file taxes. While that’s technically true, choosing to file can unlock valuable tax credits, stimulus funds, and benefit adjustments that you might otherwise miss. Even if you haven’t worked in years, if you meet certain criteria, the IRS might owe you money.
Social Security Might Not Be Enough
| Topic | Key Takeaways |
|---|---|
| Tax Year | 2024 (filed by April 15, 2025) |
| Eligible Credits | Earned Income Tax Credit (EITC), Recovery Rebate Credit |
| Potential Benefit Increase | Due to repeal of Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) |
| Max Refund Amount | Up to $7,830 with EITC + $1,400 from unclaimed stimulus |
| Who Should File | Low-income workers, Social Security recipients, part-time earners, retirees with public pensions |
| Official IRS Site | www.irs.gov |
In 2025, filing a tax return could mean hundreds or even thousands of extra dollars in your bank account—even if you thought you didn’t need to file. With recent changes to Social Security, generous refundable tax credits, and opportunities to reclaim unclaimed stimulus funds, filing your taxes could be one of the best financial moves you make this year.
Don’t leave money on the table. Even if you’re retired or on a fixed income, you may be eligible for refunds, credits, and benefit increases that can dramatically impact your financial well-being. Use trusted IRS resources, seek professional guidance if needed, and file early to maximize your return.
Why Filing a Tax Return Matters, Even If You Don’t Have to
You may not legally have to file taxes if your income is below the IRS threshold, but filing voluntarily can unlock several financial opportunities. Many credits and benefits require a filed return to determine eligibility. Think of it as a key to unlocking hidden money.
For example, a tax return is your gateway to qualifying for or receiving:
- Earned Income Tax Credit (EITC)
- Child Tax Credits (if applicable)
- Health Insurance Premium Credits
- Past Stimulus Payments
- Federal and State-level benefits
Real-World Example
Joan, a retired school teacher who receives Social Security and a small pension, didn’t think she needed to file taxes. But after submitting her 2024 return in early 2025, she received a $1,400 Recovery Rebate Credit and qualified for a $3,200 EITC refund. That’s a total of $4,600 she wouldn’t have received otherwise! Her filing also qualified her for state-level energy assistance and helped her avoid overpaying for Medicare Part B premiums.
What Is the Earned Income Tax Credit (EITC)?
The Earned Income Tax Credit is one of the most significant credits for working individuals and families with low to moderate income. It’s a refundable credit, meaning if the amount you qualify for is more than the taxes you owe, you’ll get the difference as a refund.
EITC Highlights for 2024 (Filed in 2025):
- Max credit: $7,830
- Income limit: $66,819
- Age: 25-65 without children; any age with qualifying children
- Must have earned income (e.g., part-time work, gig jobs, self-employment)
- Investment income must be below $11,600
Tip: Use the IRS EITC Assistant Tool to check eligibility. This quick tool walks you through a few simple questions to determine if you qualify.
Many people assume they don’t qualify because they worked part-time or had freelance income. Even if you earned a modest amount, you might still be eligible for hundreds—or thousands—of dollars.
What Is the Recovery Rebate Credit?
If you missed out on the third round of stimulus checks in 2021 (worth $1,400 per person), you’re in luck. The Recovery Rebate Credit lets you claim that payment now—but only if you file your 2021 and 2024 tax returns by April 15, 2025.
This money is still available, but not forever. According to the IRS, over 1.1 million Americans have yet to claim these funds. Many of them are older adults, disabled individuals, or people with low income who mistakenly believed they didn’t qualify or didn’t need to file.
Social Security Might Not Be Enough Claim It:
- File your 2021 tax return (use IRS Free File or get assistance from a VITA site)
- File your 2024 return by April 15, 2025
- Use IRS Form 1040 and claim the Recovery Rebate Credit on Line 30
Helpful Resource: Find free help near you at IRS Taxpayer Assistance Locator
Major Social Security Changes in 2025
One of the biggest updates affecting retirees in 2025 is the Social Security Fairness Act, signed into law on January 5, 2025. This legislation repeals two long-standing provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
These rules previously reduced or eliminated Social Security payments for people who earned pensions from jobs that didn’t pay into the Social Security system. Now that these are gone:
- Affected retirees may receive lump-sum payments for lost benefits starting from January 2024
- Monthly Social Security checks will see permanent increases
- Widow and spousal benefits will increase for those impacted by GPO
Visit: www.ssa.gov for updates and eligibility tools.
For those who spent decades in public service—like educators, law enforcement officers, and firefighters—this change can mean thousands of dollars in back pay and hundreds more per month in Social Security income.
Will Higher Social Security Benefits Be Taxed?
Yes, they might be. The IRS considers Social Security benefits taxable if your combined income exceeds certain thresholds. Combined income includes:
- Adjusted Gross Income (AGI)
- Nontaxable interest (like municipal bonds)
- Half of your Social Security benefits
| Filing Status | 50% Taxable If Income Over | 85% Taxable If Income Over |
|---|---|---|
| Single | $25,000 | $34,000 |
| Married Filing Jointly | $32,000 | $44,000 |
Planning Tip: Consider adjusting your withholding using Form W-4V. You can elect to have up to 25% of your Social Security check withheld to avoid a surprise tax bill later.
Consulting a qualified tax advisor or financial planner can help you evaluate whether withholding is right for you and what strategies can help reduce your taxable income.
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Social Security Might Not Be Enough Guide to Maximize Your Refund
- Gather Documents: Collect all relevant paperwork before starting your return,
- SSA-1099 (Social Security income)
- W-2 or 1099 (for any part-time or freelance work)
- Pension or annuity statements
- Bank interest statements (1099-INT)
- IRS Letter 6475 (third stimulus payment info)
- Use Free IRS Tools: The IRS offers several free online tools and services,
- IRS Free File for low-income earners
- Get Your Transcript to verify past returns and stimulus amounts
- Interactive Tax Assistant to answer questions
- File Before the Deadline:
- Deadline to file for 2024 taxes is April 15, 2025
- Late filings may result in lost credits or delayed refunds
- Claim All Applicable Credits: Make sure to claim everything you qualify for,
- EITC (even with small earnings)
- Recovery Rebate Credit
- Child Tax Credit (if applicable)
- Check for Retroactive Social Security Payouts:
- Visit www.ssa.gov to check if you qualify for WEP/GPO back pay
- Contact SSA directly or use your My Social Security account
FAQs On Social Security Might Not Be Enough
Do I have to file taxes if I only get Social Security?
Not legally, but you should file to claim credits, benefits, and avoid missing out on available money.
Can I still get stimulus money in 2025?
Yes, through the Recovery Rebate Credit, but you must file by April 15, 2025.
What if I didn’t file in 2021?
You can still file now, but you must file both 2021 and 2024 returns to claim the Recovery Rebate.
Will my Social Security check be bigger this year?
If you were impacted by WEP or GPO, yes. Expect a lump sum and a permanent monthly increase.
How do I know if I qualify for EITC?
Use the IRS EITC Assistant Tool. You can also call the IRS or visit a local VITA center.
