Tax requirements for SSI benefits February 13, 2013 Are Supplemental Security Income (SSI) benefits taxable? Supplemental Security Income payments are not subject to Federal taxes so you will not receive an annual form SSA-1099. However, if you also receive Social Security benefits, they may be subject to income taxes. Related Posts If I’m planning to retire in 2016, what would be the EARLIEST retirement date for me Social Security and Medicare tax rates NEED A SOCIAL SECURITY VERIFICATION OF INCOME LETTER. About The Author admin Our job is to answer your questions and provide information that will guide you through the process of getting your Social Security Benefits.