In 1935, President Franklin D. Roosevelt signed the Social Security Act. Part of this was a program that gave monthly benefits to workers who were retired and aged 65 and above. Two years later, taxes started being collected. Both employers and workers had to pay 1% for their first $3,000 in earnings.
Then, in 1983, President Ronald Reagan signed legislation concerning the taxation on Social Security benefits. This also dictated that full retirement benefits will see incremental increases to those aged 67.
A couple decades later in the year 2000, President Bill Clinton signed legislation that removed the retirement earnings test. This would be applicable to individuals who are over the full benefit retirement age. The test was done as a mandate for beneficiaries, stipulating that they turn over a portion of their Social Security benefits when their overall earnings reach a particular amount.
Want to know more about what Social Security benefits include? Contact Senior Strong today.