Who Started Taxes On Senior Social Security Benefits?

Written By: Charlotte Senger
Reviewed By: William Rivers
Published: September 3, 2021
Last updated: May 12, 2023

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.

Frequently Asked Questions:

Who initiated the taxation of Social Security benefits?

The taxation of Social Security benefits began in 1983 under the Social Security Amendments signed by President Ronald Reagan.

Why were taxes on Social Security benefits introduced?

Taxes on Social Security benefits were introduced as part of a larger plan to address the financial solvency of the Social Security system.

How much of Social Security benefits can be taxed?

Depending on income, up to 85% of a person's Social Security benefits can be subject to federal income tax.

Want to know more about what Social Security benefits include? Contact Senior Strong today.

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Charlotte Senger is a senior discount expert who handles all financial concerns and ensures that seniors are able to save money. She got her bachelor’s degree in Accounting from the University of Texas.
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