Tax implications on government offset Social Security lump sum payment
Wondering how the lump sum payment received from Social Security from my late husband‘s account will impact my taxes this coming year. In fact, it’s double what the amount was sent to me in a lump sum when you add in the monthly check, I am not receiving, and adding that to my Retirement income without any withholding has me nervous. Is there any additional deduction for the sudden windfall?
Terry Says
Wait, this doesn’t make sense. Did you suddenly start receiving a widow’s benefit — which is twice as high as your own check? You would receive 100% of his check if it was larger than yours, since you are a widow.
And yes, that means you should recalculate your income tax withholding requirements for 2026, if necessary. It’s time to seek the advice of your CPA as to how much should be withheld. You’ll need an estimate of how much your total income will be in 2026. And at the same time, you might review 2025 total income, in case you’ll need to pay extra when you file in April next year for 2025.
