These 6 Social Security Changes Can Affect Your Payments in 2025

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Millions of people depend on Social Security during retirement. Perhaps you also hope to supplement your Social Security income as much as possible so you can have a comfortable retirement.

Unfortunately, Social Security can be confusing. From cost-of-living adjustments to changes in Medicare premiums, many factors can impact your benefits.

Here are some key changes to benefits you need to know about to help you understand how much you'll receive from Social Security in 2025.

The adjustment will take effect in January 2025 for 68 million Social Security beneficiaries, while nearly 7.5 million SSI recipients will see increased payments starting December 31, 2024.

The taxable maximum earnings subject to Social Security tax will rise to $176,100. For workers under full retirement age, the earnings limit increases to $23,400, with $1 deducted for every $2 earned above this amount.

Those reaching full retirement age in 2025 face a higher limit of $62,160, with $1 deducted for every $3 earned over that threshold until their birthday month. There are no earnings limits for workers at or beyond full retirement age.

For those enrolled in Medicare, premiums for Part B — which covers doctor visits and outpatient treatments — are typically deducted directly from Social Security payments.

The monthly Part B premium standard monthly Part B premium will be $185.00 in 2025, an increase of $10.30 from $174.70 in 2024.

Individuals who collect Social Security while continuing to work before reaching full retirement age may see a portion of their benefits withheld depending on how much they earn.

In 2025, beneficiaries who haven't reached full retirement age and are still working will have $1 withheld for every $2 in work income they receive above $23,400. In 2024, that amount was $22,320.

Social Security Disability Insurance (SSDI) recipients must meet income requirements to maintain eligibility for benefits. In 2025, the threshold for most SSDI beneficiaries is an income of $1,620 a month per month, up from $1,550 in 2024.

For those receiving SSDI due to blindness, the limit increases to $2,700 per month, $110 more than in 2024.

Social Security benefits will increase across the board in 2025 with the 2.5% COLA, including for widows, widowers, and disabled individuals.

The average spouse of a retired worker will see their benefit rise from $910 to about $933 per month.

Aged widows and widowers living alone will see an increase from $1,788 to $1,832, while widowed mothers with two children will see benefits rise from $3,669 to $3,761. 

Disabled workers with a spouse and children will have their benefits increase from $2,757 to $2,826.

Social Security benefits may be subject to federal taxes. The amount that's taxed is based on your combined income, which includes the sum of half your benefits plus total adjusted gross income and nontaxable interest.

For individual tax filers, up to 50% of benefits may be taxable if they have a combined income between $25,000 and $34,000. For couples filing jointly, this range is between $32,000 and $44,000.

If you earn above these thresholds, up to 85% of benefits may be taxable.

Those thresholds remain unchanged from year to year. That means that as your benefit income increases yearly with COLA adjustments, more of it may become taxable. That makes it harder to boost your bank account.

Social Security may seem complex, but understanding these changes can help you make informed financial decisions.

Equipping yourself with knowledge about cost-of-living adjustments, Medicare, and taxes allows you to avoid making mistakes and create a more secure retirement.