SSA Announces Retroactive Benefit Payments to Begin Immediately

The Social Security Administration announced it is now starting to pay retroactive benefits and will increase monthly benefit payments to taxpayers whose benefits were reduced by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).  WEP and GPO provisions reduced or eliminated the Social Security benefits for people who receive a pension for work that was not covered by Social Security (because they did not pay Social Security taxes). The Social Security Fairness Act eliminated WEP and GPO as of January 2024. Impacted taxpayers will receive a one-time retroactive payment by the end of March (deposited into the bank account on record with Social Security).  Higher monthly benefits will first be reflected in benefit payments for April. The change in payment amount will vary from person to person.  Impacted taxpayers will receive a mailed notice from Social Security explaining the benefit change or retroactive payment (the payments will be deposited two to three weeks before the mailed notice is received).  For more information on the tax treatment of Social Security benefits, visit Tax Facts Online. Read More: Link to Q3635.