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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