In the first few hours of 2025, over 229 U.S. workers earning over $50 million per year will have likely paid all their Social Security taxes for the entire year.

Social Security benefits are a vital income source for retirees, but many are unaware that these benefits can be subject to federal income tax.

Check out the situation with the taxation of social security benefits in 2025 for where you live, or maybe where you’re dreaming of retiring.

Trump’s campaign argues that this change is long overdue, especially as inflation has eroded purchasing power. According to estimates, Social Security benefits have lost 20% of their value since 2010 due to cost-of-living adjustments (COLA) failing to keep up with rising prices.

If you're not required to file, you may want to consider it since you may be eligible for a refund. If you made estimated tax payments or had federal taxes withheld, you may be entitled to a refund of any surplus withholding. If you don't file, you may be leaving money on the table.