RogerD1
Employee Tax Expert

Retirement tax questions

Yes, it would be unlikely for any bill to pass Congress now to reduce the extra taxes in 2025 on Social Security lump-sum payments from 2024.  There is pending legislation called 'No Tax on Restored Benefits Act' that was introduced in February 2026 to address this issue.  However, since it is proposed legislation and not law yet, there is no guidance whatsoever as to how this bill will address 2024 lump sum Social Security received in 2025.  For now, just file taxes as is right now, and, should this become law, guidance from the IRS will be needed as to how affected taxpayers will claim any refunds.

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