Buffalo, N.Y. (WBEN) - A change in the Windfall Elimination Provision could benefit public employees come 2025 making them eligible for Social Security benefits, but how could this affect their 2026 tax filings?
The Tax Lady, Esther Gulyas of EG Tax, says if you were a public employee in the past, the Windfall Elimination Provision said that if there was nothing withheld in Social Security because you were getting a public pension, they didn't allow you or they eliminated or reduced your benefits for Social Security once you qualified to receive them because of this Windfall Elimination Provision.
Gulyas says President Biden before leaving office changed provisions, meaning these people never got the money for Social Security effective 2024 since January.
"Going forward, they're going to get a lump sum of the benefits they didn't get for the year, and their existing social security that they might get beginning now is going to be increased to cover what wasn't available in the past," explained Gulyas with WBEN.
Gulyas notes Social Security is potentially taxable anyway.
"Whatever you would have gotten, of course, you're going to get those benefits in 2025 so it won't happen till the 2025 tax return," Gulyas said.
She says it'll just be more money, but there could be more coming.
"President Trump is trying to make Social Security not taxable at all, and they're supposed to be taking that on in the next couple of months. So it just may be a win, win, win for these people," Gulyas said.
She adds they're going to get a back amount of Social Security, their future benefits will be increased, and possibly our Social Security won't be taxable at all,
It's going to be an automatic adjustment that the federal government sending to you.
"They're saying that this money should be in your hands before the end of March, at least by the end of March," Gulyas said.
This may affect your 2026 returns next year.