Urgent announcement from Social Security to thousands of Americans: it will be in October

The United States Social Security Administration has sent an important reminder to many individuals. Something key will take effect in less than a month. This notice has caused some excitement among those who closely follow their benefits and obligations.

The first thing that the SSA explains in its message is that starting October 1, the interest rates for the fourth quarter of 2025 will remain at 7% per year. This will apply to both overpayments and underpayments, with daily compounding.

Social Security makes clear what the interest rates will be

This is an important detail for those who need to review their accounts or plan to pay or receive an adjustment. This 7% rate was already known for the third quarter and is being kept unchanged, which provides stability and clarity for taxpayers.

The SSA uses this system to automatically calculate the interest caused when someone pays too much or too little in taxes. The message also reminds recipients of the meaning of these rates: if someone paid too much, that excess will be refunded along with the corresponding interest. If they paid too little, they will need to add that shortfall plus interest.

It affects individuals in the U.S. who must meet their tax obligations

In both cases, that annual rate is the one that will apply in a few weeks, which is key for planning payments or refunds. Although the official message comes from the IRS (Internal Revenue Service) and not directly from the SSA, it affects individuals in the United States who must meet their tax obligations.

This message also helps avoid surprises in the last quarter of the fiscal year and allows for more orderly financial management. This entry into force is valid from the first day of October 2025 and concerns the quarterly interest rates. Still, the 7% annual rate is being kept for individuals with overpayments or underpayments.

This is an important detail that provides certainty and peace of mind for those who keep track of their tax situation. If you have questions about how this affects you, it's best to consult an advisor or visit the official pages of the SSA and the IRS.