In a couple of cases, states have revamped taxes on Social Security benefits. These changes, effective as of January 1, could put more money in the pockets of older adults and other beneficiaries at a time when the debate over federal taxes on Social Security income is also heating up.

Approximately 40% of households pay taxes on their Social Security benefits, according to the Social Security Administration. If you do owe taxes on your benefits, managing them effectively could save you a lot of money.

Trump’s campaign argues that this change is long overdue, especially as inflation has eroded purchasing power. According to estimates, Social Security benefits have lost 20% of their value since 2010 due to cost-of-living adjustments (COLA) failing to keep up with rising prices.

Newsday talked with financial advisers for advice on when you should sign up to start receiving benefits, and an expert on the politics of Social Security explains why there are proposals to raise the retirement age beyond 67 — and why that hasn’t happened.

Social Security is tweaked each year to account for changes in areas such as life expectancy and cost of living.

In 2025, nine states will continue to tax Social Security benefits, impacting retirees' financial planning. Understanding the specific criteria and exemptions in each state is crucial for beneficiaries aiming to optimize their income.