4 in 10 SS Recipents Affected By Taxation of Benefits

According to a new report by the Congressional Research Service, almost 4 in 10 Americans are affected by taxation of Social Security benefits. There are three tiers of income taxes on Social Security benefits. For married couples, with a total income of $32,000 or less, there is no tax on their benefits. For couples with income between $32,000 and $44,000, half of their benefits are subject to tax. For couples with income exceeding $44,000, 85 percent of their benefits are subject to income tax. For individuals, these levels are set at $25,000, $34,000, and greater than $34,000. The Senate-approved budget resolution includes language that would roll back a tax increase on Social Security benefits that was enacted in 1993, but the provision is not expected to survive a House-Senate conference.
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