The Social Security Fairness Act’s Benefit Increase Could Come With a Surprise Bill for Some
From Nasdaq: 2025-04-13 15:30:00
- The Social Security Fairness Act has resulted in a significant increase in benefits for over 3.2 million Americans, with some retirees seeing their checks rise by an average of $360 per month as of April.
- However, the boost in benefits could also lead to higher taxes for seniors, as the Social Security benefit tax formula is based on provisional income and could result in taxes on up to 85% of benefits for some individuals.
- To prepare for potential benefit taxes, retirees can reduce their provisional income, request withholding from their Social Security checks, or consult with a tax professional for guidance on managing their tax liability. President Trump has expressed interest in eliminating this tax in the future.
- By maximizing Social Security benefits, retirees could potentially receive an additional $22,924 annually, providing a significant boost to retirement income. Joining Stock Advisor can provide insights into strategies to enhance Social Security benefits.
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