Tax Implications from Social Security Fairness Act Increase
With the passing of the SS Fairness Act my monthly SS payment went up from $315/mo to $924/mo. I also got a lump sum payment of just over $8k. Should I do anything before the new year to ease my taxes?
Than you.
Terry Says
Yes, you should consult with your tax preparer, or an online tax service like TurboTax to see if you should make an estimated payment in January. You are probably safe if you’ve paid in 100% of what you owed last year. (I’m assuming you didn’t withhold more taxes from this higher monthly payment.)
BUT, you will still face a bill when you file your tax return in April. So it might be wise to put more aside for taxes by making an estimate through the Federal online tax payment system at EFTPS.
