Social security windfall & Taxes
I am a 75 year-old widow. I was a CPS teacher and have a pension. I recently received the windfall of $29,000, and also will receive $1900 a month. This is great but now I’m concerned about paying taxes. I know that I will owe a lot when tax time comes around. What is the best option for me for this extra money so I won’t be shocked next April?
Thank you.
Terry Says
Either use tax software like TurboTax to estimate your liability on all this new money, or consult a CPA. You can increase withholding on your monthly payments, and set some of the windfall aside for taxes next April.
And don’t forget, it’s possible that your Medicare Part B and D premiums will also increase for 2026!
In other words, don’t spend this windfall for at least a year!
