economy
February 11, 2026
How Social Security Fairness Act payments may affect beneficiaries this tax season
The Social Security Fairness Act provided more than 2.8 million beneficiaries with higher payments. Here's what to know about reporting that income to the IRS.
TL;DR
- New laws enacted in 2025 will impact Social Security beneficiary taxes.
- The Social Security Fairness Act ended provisions reducing benefits for individuals with non-Social Security-taxed pension income.
- A new tax deduction of up to $6,000 per eligible senior aims to offset taxes on Social Security benefits.
- Beneficiaries affected by the Fairness Act may experience higher benefits, some of which could be taxable.
- The senior deduction can help reduce the taxable amount of increased Social Security benefits.
- Eligibility for the full $6,000 deduction requires modified adjusted gross income below $75,000 for individuals and $150,000 for couples.
- The lump-sum election on Form 1040 or 1040-SR can reduce the taxable amount of retroactive benefit payments.
- The SSA-1099 form will report Social Security benefit income, including lump-sum payments, to beneficiaries and the IRS.
Continue reading the original article