Income taxes on WEP and GPO payments
Terry,
First of all, thank you again for your contribution in the repeal of the WEP and GPO.
I try to follow most of your columns as well as your appearances on WGN radio and TV. I may have missed it, but I haven’t seen anything from you addressing the income tax consequences of receiving payments during this year from the repeal. I know that my income taxes will be affected as well as my Medicare payments, but I’m not sure that everyone is aware. I also believe that these payments will fall under safe harbor, but I’m not completely sure.
My reason for sending this email is that I thought it might make a good PSA for you to address this in your column or on radio or tv.
Thanks for all of the useful financial information you impart weekly.
Terry Says
Yep, everyone who received a boost in benefits and the one-time catch up payment will find a tax surprise in April. I have often suggested that people make adjustments in their SS withholding. And if they paid in 100% of last year’s tax obligation there will be no penalty.
But thanks for the good idea of mentioning it either in a column or on radio. I will remember to do so!
