The IRS will soon issue tax refunds to help with expenses, while upcoming changes to Social Security work credits and proposed tax reforms in “Project 2025” could affect your retirement planning and financial stability.
IRS Tax Refunds Coming Soon – What You Need to Know About Social Security Work Credits and 2025 COLA
According to the report of VIBUS, the IRS will soon start sending out tax refund checks to help low and moderate-income taxpayers manage their expenses. The refunds are based on your annual income and will be paid in weekly batches from early February to late May. To get your refund, make sure you’ve filed your tax return. The money will be deposited directly into your account.
With the 2025 Cost-of-Living Adjustment (COLA) coming up, there are questions about Social Security work credits. Even though the amount of money needed to earn one work credit will go up, you still need the same number of credits to qualify for retirement benefits at age 62. For example, in 2024, you’ll need to earn $1,730 for one credit, up from $1,640 in 2023. The total number of credits needed won’t change.
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$1,730 to Earn One Credit: IRS Tax Refunds, Social Security Work Credits, and “Project 2025” Tax Reforms – What You Need to Know! (PHOTO: Newsweek)
How “Project 2025” Tax Changes Could Impact Your Retirement Planning and Financial Stability
There are also proposed tax changes in “Project 2025” that might affect your retirement planning. This plan suggests reducing the number of tax brackets, removing most deductions, and changing tax rates on investments. Keeping up with these proposed tax changes and understanding how COLA affects work credits will help you plan better and stay financially stable.
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