Given that the median household income for seniors is about $50,000, this expanded deduction could substantially reduce or even eliminate federal tax liability on Social Security benefits for many ...

Social Security benefits were excluded from income taxes until 1984, when changes signed into law by President Ronald Reagan introduced taxes on Social Security income above a certain threshold.

The sweeping tax and spending bill backed by President Donald Trump includes significant changes to the U.S. tax code and public benefit programs, and Social Security beneficiaries will be ...

Key Points. Income tax on Social Security benefits for individuals earning over $25,000 began under President Ronald Reagan and Alan Greenspan in 1983 to help cover the shortfall in the Social ...

A married couple with $48,000 in Social Security and $50,000 in pension income currently pays tax on two-thirds of their benefits. Under Trump’s original promise, their tax savings could have ...

Social Security benefits were excluded from income taxes until 1984, when changes signed into law by President Ronald Reagan introduced taxes on Social Security income above a certain threshold.

Trump Pledged ‘No Tax on Social Security.’ The Tax Bill Says Otherwise. House bill’s proposed $4,000 senior deduction falls short of eliminating taxes on Social Security benefits altogether ...

If a single filer’s income is $25,000 to $34,000, the tax applies to as much as 50% of benefits. People with higher incomes are subject to taxes being levied on up to 85% of their benefits.

President Trump during his campaign proposed exempting Social Security from federal income tax. Several lawmakers in Congress have recently introduced legislation that aims to accomplish the same ...

President Donald Trump in the Oval Office at the White House on April 24, 2025 in Washington, D.C. Chip Somodevilla/GETTY End of Social Security Income Taxes. Trump first pledged to end all taxes ...

Reagan’s tax on Social Security was capped at 50% of combined income, while Bill Clinton increased the maximum to 85% in 1993. Inflation and rampant Congressional overspending has only increased ...