Two Tweaks for the Taxation of Social Security Benefits

Authors

Alan L. Feld, Boston Univeristy School of LawFollow

Document Type

Article

Publication Date

7-4-2005

ISSN

1048-3306

Publisher

Tax Analysts

Language

en-US

Abstract

The ongoing public discussion of possible changes in the Social Security retirement system has largely ignored a small but significant aspect: The relationship between the retirement benefits paid and the federal income tax. Internal Revenue Code section 86 includes Social Security retirement benefits in the federal income tax base on a three-tier system. Individuals may exclude benefits from gross income, include them at 50 percent, or include them at 85 percent.¹ Proposed legislation would repeal the top tier.² Modification of section 86, to better accord with the proper measurement of income subject to tax, perhaps embodied in a larger "fix" for Social Security, should become part of the legislative agenda.

Recommended Citation

Alan L. Feld, Two Tweaks for the Taxation of Social Security Benefits , in 108 Tax Notes 137 (2005).
Available at: https://scholarship.law.bu.edu/faculty_scholarship/2969