Taxation of Social Security benefits
Under legislation enacted in 1983, the Social Security Trust Funds receive
income based on Federal income taxation of benefits. The funds receive
taxes on up to 50 percent of benefits from single taxpayers with incomes over
$25,000 and from taxpayers filing jointly with incomes over $32,000.
Legislation enacted in 1993 extended taxation of benefits. The legislation
increased the limitation on the amount of benefits subject to taxation
from 50 percent to 85 percent for single taxpayers with incomes over $34,000
and for taxpayers filing jointly with incomes over $44,000. All
additional tax income resulting from the 1993 legislation is deposited
in Medicare's Hospital Insurance Trust Fund.