25/03/2025
Attention retired teachers and public employees. You might be in line for new benefits from the U.S. Social Security Administration.
That’s because a recent law instates Social Security (SS) benefits for certain individuals previously affected by the Windfall Elimination Provision and Government Pension Offset. Both these measures were repealed by the Social Security Fairness Act (H.R. 82) enacted on January 5, 2025. See link in the comments.
You may receive a retroactive payment and increased SS benefits IF: 1) your employment history includes work that qualified for SS credits, and 2) you receive a pension or retirement income for work that was not covered by Social Security (for example, through CSRS or TRS).
PLAN AHEAD! Affected SS recipients began receiving retroactive payments in late February. These payments may require you to pay more income taxes when you file your 2025 federal income tax return in 2026. Once you know the amount of the payment, you can estimate how much, if any, additional tax you will owe.
Additional Information: The retroactive payment covers the increase in benefit amounts back to January 2024. (Payments will be made as a one-time deposit into the bank account on file, the same one used to receive your regular monthly SS payments.) Affected recipients will also receive a mailed notice explaining both the retroactive payment and the increased monthly benefit, which becomes effective April 2025.
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