dev145
Employee Tax Expert

[Event] Ask the Experts: Tax Law Changes - One Big Beautiful Bill

No, the income earned from Tips and Overtime that is now not taxed will not have  any affect when the person retires and starts collecting monthly Social Security payments. It is important to note that income is only excluded from federal taxes not from FICA (Social Security and Medicare) taxes. That means, you still have to pay FICA taxes on those excluded income and it will be included on SS statement and count towards your benefit calculations. 

 

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