Taxation of Social Security Benefits

Taxation of Social Security Benefits

The history of taxation of Social Security benefits

Are your benefits subject to taxation?

The history of taxation of Social Security benefits

Social Security benefits were tax free until 1983

After 1983 up to 50 percent of benefits were subject to income tax

Clinton tax increase of 1993 increased to 85 percent the amount of benefits subject to income tax

Are your benefits subject to taxation?

If your income is low, your Social Security benefits are probably not subject to income tax

If your income is quite high, 85 percent of your benefits are subject to tax

If you're in the middle, you're in for a complex calculation

Calculation depends on income and marital status