Self-employed people must shoulder the full 12.4% tax, though they get to claim a deduction on their income tax return for one-half of the self-employment taxes they pay. In this case, the higher ceiling on Social Security payroll taxes for 2025 will cost them $930 more.

You might, depending on your income, but smart financial planning now can help lower or even eliminate your taxes in the future.

The House approved the bill and ultimately reversed the Windfall Elimination Provision and the Government Pension Offset Provision.

A Social Security-related bill with bipartisan support would expand benefits for workers who are also eligible for other pensions.