Many people who will start getting Social Security benefits in 2025 are thinking how much taxes will change their total income. This is because the IRS has changed the rules.
When these benefits are added to other pay, they can change how taxes are calculated, especially with the new tax brackets from the IRS. Know how these things work so that you do not get caught off guard when it is time to file your taxes.
The IRS changes tax rates all the time to keep up with inflation. In 2025, there will likely be some big changes that could affect retirees’ income.
This change can affect how much a person owes in taxes, based on how they file and how much money they make each year. Read on to see how the new tax brackets for lawyers might affect people who get Social Security.
How will the new IRS tax brackets affect those collecting Social Security?
When someone gets Social Security and other income, like a pension or pay, the total amount must be taken into account when they figure out their taxes.
The IRS has rules about how to tax Social Security benefits. Depending on a person’s income, they may have to pay taxes on anywhere from 50% to 85% of their benefits. This depends on how much money was made over the course of the year.
Someone may have to pay taxes on some of their Social Security payments if they file as single but make more than $25,000 a year from other sources.
It is $32,000 for people who file jointly. These two situations will both use the IRS’s new tax brackets for 2025 to figure out the exact rate that will be used.
Also, remember that not all income is taxed the same way. In this case, investment income and Social Security payments may be taxed at various rates based on the tax bracket.
To keep the lawyer’s tax bill as low as possible and get the most out of Social Security, they need to carefully plan their total income.
New IRS Tax Brackets in 2025
Social Security benefits are taxed, and taxpayers should also know about the tax brackets that decide the tax rate on their whole income.
Every year, the IRS changes these tax rates to reflect changes in the economy and inflation. This can affect how much you pay in taxes each year based on your total income. The new tax rates for 2025 are shown below:
| Tax Bracket (Annual Income) | Rate for Single Filers | Rate for Joint Filers |
|---|---|---|
| Up to $11,000 | 10% | 10% |
| $11,001 – $44,725 | 12% | 12% |
| $44,726 – $95,375 | 22% | 22% |
| $95,376 – $182,100 | 24% | 24% |
| $182,101 – $231,250 | 32% | 32% |
| $231,251 – $578,125 | 35% | 35% |
| Over $578,126 | 37% | 37% |
These are the suggested new tax rates for lawyers for the year 2025. The tax brackets show what portion of your income will be taxed.
Like we already said, your total income may affect how much of your Social Security you get taxed, so it is important to know which bracket you are in.
If your total yearly income is higher than the amounts shown in the table, you may have to pay more for your benefits.
It is also important to think about other things that might affect your tax bill, like normal deductions, tax credits, and whether your income comes from wages, investments, or something else.
Tax planning for 2025 is important for people who are getting close to retirement or already getting Social Security. This will help them escape tax surprises from the IRS.
Also see:-What is the best way to get the biggest retirement check in 2025?