What to Know for Tuesday, July 28th, 2026: |
1: Some states blocking federal tax cuts on tips, overtime, Social Security — Treasury Secretary Bessent blasts Colorado, NY, Illinois, DC for noncompliance |
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(Image Credit: Getty Images |
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At least dozen Democrat-led states including Colorado, New York, Illinois, and DC refuse to conform to One Big Beautiful Bill provisions eliminating taxes on tips/overtime despite federal law: Treasury Secretary Scott Bessent issued statement July 27, 2026 criticizing states for "deliberately blocking their own residents" from receiving "historic benefits" — federal law allows up to $25,000 tip deduction (reduced over $150K AGI/$300K joint) and exempts overtime — states retain authority over state income taxes but choosing not to conform to federal changes. No Tax on Tips deduction worth ~$1,300/year for waitresses, hair stylists, delivery drivers; No Tax on Overtime saves ~$1,400/year for manufacturing/hourly workers: 73% of Americans support eliminating taxes on tips/overtime per polling — workers in food/beverage service, barbering, nail care, esthetics, spa treatments qualify — OBBBA also created new senior tax deduction for Social Security income — federal law passed with Republican votes; every Democrat voted against provision. Colorado, New York ballot measures attempting to align states with federal tax policy — state lawmakers arguing fairness requires taxing all earned income equally: Colorado measure would repeal state overtime/tip tax requirements; polling shows 73% Americans support no-tax-on-tips/overtime — state lawmakers emphasize treating all earned income uniformly — federal government estimates $1.3K-$1.4K annual savings per affected worker if states comply.
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➜ Read the full article from the New York Post here. |
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2: SSA launches major SSI overhaul reducing improper payments — Payroll Information Exchange automates wage reporting for 7.5M vulnerable beneficiaries |
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(Image Credit: Eciks) |
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SSA established dedicated SSI Improvement Team September 2025 under Commissioner Bisignano to reverse decade of rising improper payments — $6.35B in overpayments in FY2024 alone: Improper payment rate increased from 9.41% (FY2019) to 10.62% (FY2024) — first time agency appointed lead executive specifically to oversee SSI transformation — goal to make program "better for people who rely on it and SSA employees who support them." Payroll Information Exchange system achieves full-scale operations September 2025 — automatically obtains employer wage reports for SSI recipients, preventing overpayments while reducing manual reporting burden: Participating payroll data providers send monthly wage information to SSA for recipients who authorize participation — eliminates need for beneficiaries to manually report income changes — Access to Financial Institution tool deployed to identify excess resources early, preventing large overpayments before they occur. SSI serves 7.5 million aged, blind, disabled Americans with limited resources — funded from general tax revenues, not payroll taxes: Additional improvements include reinvigorated non-medical redetermination process where SSA conducts scheduled interviews verifying ongoing eligibility — policy clarifications on resource transfers, in-kind support/maintenance, settlement awards, inheritances — digital communication options through mySocial Security accounts reduce delays and improve service quality for vulnerable populations.
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➜ Read the full article from Eciks here. |
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3: Married couples must enroll in Medicare individually — coordinate IRMAA income, medication lists, and network access to avoid costly mistakes |
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Medicare is individual coverage, not family plan — each spouse enrolls separately, pays own premiums, makes own plan choices: Unlike employer insurance, no "adding spouse" option — coordination critical for couples with combined MAGI over $218,000 (married filing jointly threshold) triggering IRMAA surcharges on both spouses — example: couple with $300K joint MAGI each owing IRMAA Tier 2 surcharges ($2,884/year per person, $5,768 combined) plus standard Part B premiums ($24,072/year total for two). Critical planning considerations for couples: spousal work history may qualify partner for premium-free Part A; medication/provider networks often differ requiring separate plan reviews; avoid assumption same plan works for both: One spouse's 40 quarters employment may provide premium-free Part A for non-working or lower-earning spouse — Part D drug plans change annually; couples should review separate medication lists individually — networks, deductibles, copays vary; healthy spouse with annual checkups may prefer MA plan, chronically ill spouse may need Traditional Medicare + Medigap despite "convenience" of matching plans. IRMAA income management requires joint planning — Roth conversions, capital gains, qualified charitable distributions, withdrawals affect both spouses' surcharges simultaneously: Married couples have no "marriage bonus" for IRMAA (double single threshold $109K) — one high-earning spouse filing jointly under threshold pays zero surcharge; same couple filing single pays both hit surcharges — tax/retirement plan decisions for one spouse ripple to other's Medicare costs.
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➜ Read the full article from the KHON2 here. |
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Here’s What You Missed on YouTube: |
Check out our new YouTube videos for Tuesday, July 28th. |
Social Security: August 2026 Dates + Truth About Trump's Australia Retirement Plan |
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Social Security: August 2026 Dates + Truth About Trump's Australia Retirement Plan |
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This newsletter is for information only. Always confirm your options directly with Social Security, Medicare, Medicaid, or a qualified advisor before making big decisions about your benefits. |
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