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Taxation of Social Security Benefits Has Not Gone Away - MSN.com
More seniors are working beyond their full retirement age (FRA) while still claiming Social Security at FRA. Once you reach FRA, there is no earnings limit on what you can earn while collecting benefits. But many seniors are caught off guard at tax time.
Despite extensive discussion about ending Social Security taxation, the tax still applies. A bill was even presented in Congress, but it did not pass. You need to account for those taxes when you have other income. While the passage of the Big Beautiful Bill, giving those 65 and older an additional $6,000 tax deduction, reduces your tax liability, it may not eliminate it entirely. This deduction is only guaranteed through December 31, 2028, when it will be up to the new administration to extend it.
Quinn Fottrell has written an article about this topic. He discusses your options for accounting for these additional taxes and provides a link to the IRS Tax Withholding Calculator. Read his full article here… to see what steps to take next.
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