January 2025:
President Biden recently signed the Social Security Fairness Act, which retroactively eliminated Social Security provisions that reduced the amount of Social Security benefits paid to those also receiving income from public pensions.
Eligible recipients will see an increase in their benefits, and will also receive a lump sum payment for 2024 and part of 2025. Effected taxpayers should be aware that the additional income could increase their tax liability, and in order to avoid underpayment penalties, withholding or estimated payments should be increased.
If you are impacted by this new law, please contact us for more information.
President Biden recently signed the Social Security Fairness Act, which retroactively eliminated Social Security provisions that reduced the amount of Social Security benefits paid to those also receiving income from public pensions.
Eligible recipients will see an increase in their benefits, and will also receive a lump sum payment for 2024 and part of 2025. Effected taxpayers should be aware that the additional income could increase their tax liability, and in order to avoid underpayment penalties, withholding or estimated payments should be increased.
If you are impacted by this new law, please contact us for more information.
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