In this episode, Dan and Ed break down the tax implications of the Social Security Fairness Act and how it affects federal retirees. They discuss the impact of retroactive lump-sum payments, higher monthly benefits starting in 2025, and how this may increase taxable income. They also explain the widow(er)’s tax penalty, “stealth” taxes, and why using IRS Form W-4V for withholding may be a smart move.


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FedLife Podcast (Ep. 143): How Social Security Changes and Lump-Sum Payments Impact Your Taxes

Join us as Dan and Ed break down how the new Social Security changes impact federal retirees, what lump-sum payments mean for your taxes, and why planning for withholding is more important than ever.

In this episode, you'll discover:

  • What do Social Security lump-sum payments mean for taxes?
  • Can extra monthly benefits increase how much of Social Security is taxed?
  • What is the widow(er) tax penalty?
  • How does Social Security affect your federal income taxes?
  • What are “stealth” taxes and how is Social Security involved?
  • What is SSA Form W-4V for tax withholding?

Source Article:
https://stwserve.com/lump-sum-retroactive-payment-of-social-security-benefits-has-tax-consequences/

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