Fact checked by Giselle Cancio If you're a qualified American, you're entitled to receive your hard-earned Social Security benefits in retirement. However, you may find yourself in a situation where your Social Security benefits are smaller than expected because you've earned too much money while receiving early retirement benefits.

The federal government taxes the Social Security benefits of some retirees if their provisional income exceeds thresholds for their marital status.

The average Social Security payment will rise by more than $50 per month starting in January, thanks to the federal government’s 3.2% annual cost-of-living adjustment, or COLA. A 3.2% increase in the average Social Security check—about $1,

The average retired worker collects around $1,925 per month in Social Security benefits, according to the most recent data from the Social Security Administration. But it's possible to earn far more, with the maximum benefit capped at a whopping $5,108 per month in 2025.

Early filers can earn up to $23,400 in 2025 before benefits are reduced, while those reaching Full Retirement Age (FRA) in 2025 can earn up to $62,160. High earners who are not ye

The good news is that in most cases, Social Security is not taxable at the state level. 41 states do not tax Social Security income whatsoever. Not only that, but most of the states that do tax Social Security use far looser rules than the federal government.

As 2025 unfolds, understanding the latest Social Security updates is crucial for everyone, not just retirees. From increased benefits to new earning limits, these changes could significantly impact your financial planning.

When determining your income taxes in retirement and on your Social Security benefits, the IRS uses your “combined income” and filing status as the two main markers. At $36,000 a year from Social Security,