Crucially, those already on a 10% withholding plan will not be affected by the new 100% withholding rate. However tax refund offsets could begin soon.

Social Security recipients will be happy to hear that most states do not tax benefits. Below are the 41 states (along with Washington, D.C.) that currently do not: Missouri, Nebraska, and Kansas are the newcomers to the list, having eliminated their tax in 2024.

Taxes on Social Security benefits have gotten a lot of attention over the last few months, ever since President Trump vowed to eliminate them on social media. If you owe them, you probably know they can cost you quite a bit. The IRS taxes up to 85% of some seniors' benefits at ordinary income tax rates, which can amount to thousands of dollars.