The Social Security Administration (SSA) sends out benefit checks to about 70 million Americans each month. The amount each person gets varies. It is based on things like how much they earned while working and when they first claimed Social Security benefits.
But for July, some people might find their checks are lower than expected. This is because of a new policy from the Internal Revenue Service (IRS). According to surveys by Gallup over the last 23 years, about 80% to 90% of retirees count on their monthly Social Security benefits to pay for important things.
So it’s important to know exactly how much you will get each month. A sudden drop could cause money problems. The chance of getting a lower check in July is tied to new IRS rules that started earlier this year.
These new tax rules won’t affect all Social Security recipients. But they will impact certain groups, like:
– Retirees who have federal taxes taken out of their Social Security benefits. – People who have other sources of taxable income (like pensions or IRA withdrawals).
– Those in higher tax brackets because of their adjusted gross income (AGI). It’s important to note that people who get Supplemental Security Income (SSI) won’t be affected by these tax withholdings. That’s because SSI is not taxable.
Because of these new IRS policies, more people will have taxes automatically taken out of their checks. But this only applies to those who make more than a certain amount.
Impact of IRS rules on benefits
The amount withheld can range from $50 to $200. It depends on income and tax bracket. High earners could see up to 22% of their benefits withheld.
In 2025, the IRS gave guidance on reporting yearly tax liability for people who earn money from multiple sources. This put some Social Security recipients into higher tax categories. As a result, the SSA adjusted the amount of taxes they withhold.
If you notice a lower amount in your July benefit, log in to your SSA account. Review your IRS Form W-4V. You may submit a new form or choose to stop federal tax withholding altogether.
You could also talk to a tax advisor for more guidance. Keep in mind that a part of your benefit might be withheld again in later months. This depends on federal and state tax policies.
The SSA makes its payments on a set date each month. But the actual amount you get may change. Staying informed about changes in tax and benefit policies is important for managing your money.
This is especially true if you rely a lot on Social Security benefits. If you are affected by the recent IRS rule changes, take steps to review and adjust your tax withholding. This can help lessen any financial impact.
