A new analysis reveals that the policy change would mainly benefit high-earning retirees or those close to retirement.

However, while the House of Representatives did pass a budget resolution, this resolution did not provide funding to federal agencies or change tax law. Therefore, it did not and could not abolish taxes on income from tips, overtime work or Social Security.

Speaker of the House Mike Johnson says that President Donald Trump and Republicans will not cut Social Security, Medicaid or Medicare despite potential cuts to the programs being floated amid a budget battle in Congress.

What you want to do is get ahead of the problem. First, pay as much as you can upfront, even if it's not the full amount. This will reduce your outstanding balance, which will be subject to a 0.5% monthly failure-to-pay penalty, up to a maximum of 25% of the unpaid amount.

Social Security retirement benefits are subject to taxes in many cases. But familiarity with the rules and some advance planning can limit the impact.

Social Security beneficiaries who receive public pensions may receive higher benefit payments as the implementation of the Social Security Fairness Act gets underway.