The Social Security Fairness Act is officially changing the game for over 3.2 million retirees, spouses, and survivors who were affected by WEP and GPO provisions. For these beneficiaries, the April Social Security check might be different in a good way, as many will receive increments. However, these increased checks might also come with a surprise visit because you might have to pay more in taxes.
Who’s Getting Increased Social Security Checks?
Due to the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), individuals who had been receiving cut Social Security benefits will receive a significant bump in their April monthly checks. It is estimated that the average increase is $360 per month, which is seven times the increase received from the 2025 cost-of-living adjustment (COLA).
This average increase, plus the COLA 2025, would offer a major financial boost, especially for individuals who depend on Social Security to cover most of their monthly expenses.
How the Social Security Fairness Act Might Affect You Taxwise
Although the Social Security Fairness Act increases benefits, things might get tricky as the increase could trigger tax consequences you did not anticipate. Social Security benefits can be taxed depending on your provisional income, which includes;
- Your adjusted gross income (AGI)
- Nontaxable interest, such as municipal bond interest.
- Half of your annual Social Security benefits.
Below is a table that shows the thresholds of your provisional income that are taxable.
| Marital Status | 0% Taxable if Below | Up to 50% Taxable if Between | Up to 85% Taxable if Above |
| Single | $25,000 | $25,000 – $34,000 | $34,000+ |
| Married | $32,000 | $32,000 – $44,000 | $44,000+ |
These thresholds have held for the last over 30 years, and as Social Security checks continue to increase due to the Social Security Fairness Act and COLA, retirees who find themselves pushed into the taxable zone will have to pay more taxes.
Note that you won’t lose 85% of your checks, but you could owe ordinary income taxes (10%-37%) on up to 85% of your benefits. In other words, up to 85% of your benefits could be taxed like regular income, depending on your overall income.
Additionally, if you get an increased Social Security check and you are already close to the income limit, you might pay a lot more in taxes the next year.
How to Prepare for Social Security Taxes
If you are worried about paying more taxes because of the increases caused by the Social Security Fairness Act, you can do the following:
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Reduce Provisional Income
You can reduce provisional income by limiting withdrawals from retirement accounts if possible. You can also use Roth IRA or Roth 401(K) funds, which don’t count towards AGI, hence tax-free.
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Request Tax Withholding from the SSA
You can request the SSA to withhold federal taxes directly from their checks to avoid surprises. You can do so with help from a tax professional who will help you set the right withholding amount.
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Build a Tax Cushion
To avoid withholding taxes from your checks, you can set money aside each month to cover the bill when the tax season starts. This will help you avoid penalties or lose a lump sum later to taxes.
Conclusion
The Social Security Fairness Act brings long-awaited justice and financial relief for over 3 million Americans. However, it also pushes retirees into a higher tax category that might attract higher tax bills.
It is necessary to understand how these new payments affect your income and tax situation so that you can take steps to minimize tax-related surprises later. It is advisable to request help from a tax professional to advise you on how to go about this.