In 1935, Franklin Delano Roosevelt signed the Social Security Act into law .  At that time the American Public didn't pay taxes on their Social Security Benefits and for almost 50 years Social Security had been free from Federal Income Taxes. 

 

 

 

 

 

 

 

 

 

 

 

 

Faced with huge Federal deficits, in 1983, Congress and President Reagan amended the Social Security act to allow Social Security benefits to be subject to Federal Income Taxes. Up to 50% of your Social Security benefits became taxable when your combined provisional income exceeded a base threshold of $25,000 for single taxpayers and $32,000 for married / head of household taxpayers

 

 

 

 

 

 

 

In 1993 The Omnibus Budget Reconciliation Actwas passed and signed into law by President Clinton.  That amended the Social Security act to allow up to 85% of Social Security Benefits to be subject to Federal Income Taxes when your combined provisional income exceeded a base threshold of $34,000 for single taxpayers and $44,000 for married / head of household taxpayers.