More than 2 million retirees and 770,000 spouses and surviving spouses started getting Social Security back benefits last week thanks to the Social Security Fairness act. Those affected will start to see monthly increases with their March benefit, which is paid out in April.
The additional benefits came about because of the Social Security Fairness Act. The law, which was signed into effect in January, eliminated the Government Pension Offset and Windfall Elimination Provision.
The GPO and WEP limited or eliminated Social Security benefits to those who were also receiving pensions. That list included 3.2 million Americans, including certain teachers, firefighters, police officers, Civil Service Retirement System federal employees, and those covered by a foreign social security system.
According to a news release from the Social Security Administration, $7.5 billion in retroactive payments have already gone out to more than 1.1 million people.
Those affected will probably receive their payments before the actual mailed notice that explains what’s changing. SSA is asking impacted beneficiaries to wait until April before asking about their back payments or new monthly benefit amounts.
SSA put together a frequently asked questions page on its official site here.
If you have questions about how increased Social Security benefits might impact your taxes, reach out to us.