Some of these changes are good and some are bad. See which one affects you the most.
As Social Security enters its 90th year, Congress faces a fiscal deadline.
Social Security has a cash flow problem. For years, the agency has paid out more in benefits than it receives from payroll taxes.
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Retirees or those approaching retirement may want to stay abreast of changes to Social Security and tax law, as well as changes related to both Social Security and taxes.
Here are some recent Social Security and tax-related changes you should know about.
6 Recent Social Security Changes
If you’re wondering whether recent changes are good or bad, it’s actually a mixed bag.
1. Good
As in previous years, benefits increased due to the cost of living adjustment (COLA). The latest increase in 2026 was 2.8%. So, for example, if you were collecting $2,000 a month in 2025, you’ll have an additional $56 in 2026, giving you $2,056.
2. Bad
This 2.8% increase is smaller than the 9.7% increase in Medicare Part B standard monthly premiums, which will go from $185 in 2025 to $202.90 in 2026. Many retirees have their Medicare premiums automatically deducted from their Social Security checks, which could end up being smaller than they were in 2025.
3. Not so good
The maximum income taxable for Social Security purposes will increase from $176,100 in 2025 to $184,500 in 2026. Therefore, if you are a relatively high-income earner, more of your income will be taxed towards Social Security. But for most people, all income is taxed as usual.
Recent Social Security Changes Related to Tax Claims
4.Good
The majority of states (42 of them) do not tax Social Security benefits. And that number was 41 last year. As of 2026, West Virginia has joined the ranks. (However, the federal government do Tax some Social Security benefits. )
5. Better
The recent “big, beautiful bill” coming out of Washington introduced a $6,000 tax credit for all eligible seniors age 65 and older. So even if your Social Security benefits have to be taxed in your state, you can offset it with this deduction. It will be enforced from 2025 to 2028 and applies regardless of social security.
6.Bad
It is a mistake to think that Social Security has fallen off a cliff and will soon be unable to pay its beneficiaries at all. But the program teeth Facing a shortfall, the Social Security Trust Fund’s surplus will be depleted within a decade unless Congress acts to fill it.
If that happens, benefits paid to recipients will not disappear, but they could be reduced by 25% or more. A smaller benefit check may result in less tax being paid, but all beneficiaries would rather receive the full amount.
things that don’t change
While it’s good to be aware of what’s changed, it’s also important to have a solid understanding of the basics of Social Security. For example, here are some things that haven’t changed:
When you apply for benefits is important. If you claim early (before age 62), your check will be smaller, but you’ll receive more depending on how long you live. If you delay claiming until age 70, your check will be larger, but you’ll receive less money. Various studies have found that for most (but not all) people, the best age to apply is 70 years old.
If you’re still working, there are other ways to increase your future benefits. For example, if you can increase your income, your future benefits will also increase. Your benefits may also increase if you can continue working until your earning history is at least 35 years.
It may also be helpful to coordinate with your spouse when to file a claim. For example, high-income earners may be able to delay filing until age 70, while lower-income earners may collect sooner. This allows you to earn some income early while maximizing larger profits. So if one spouse dies, the surviving spouse will be able to keep a larger interest.
Be sure to take the time to develop a solid retirement plan that includes not only your expected Social Security benefits, but also income from other sources, such as dividends and retirement account withdrawals.
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