More About Income Tax And Social Security

Information about Social Security benefits and federal income tax was posted earlier this week.

Related to this, when did Social Security benefits become potentially taxable?

Where does this tax money go?

Portions of Social Security became taxable for federal income tax purposes in 1984 as part of the Social Security Amendments of 1983, signed into law by President Reagan.

Much of this legislation resulted from recommendations of the Greenspan Commission, formally the National Commission on Social Security Reform, which was appointed to study and make recommendations regarding the short-term financing crisis that Social Security faced at that time.

Changes in the taxation of Social Security benefits have taken place since then.

Money raised from this goes to the two Social Security trust funds.

In 2014, taxation of benefits resulted in 28 billion dollars of income to the Social Security old age (retirement) and survivors trust fund with an additional 1.7 billion dollars of income to the SSA disability trust fund.

More about the SSA trust funds is at www.socialsecurity.gov/oact/  in the Trust Fund section.