Social security refers mostly to retirement and the collection of benefits paid by the United States Social Security program. The Social Security program is the largest government program in the world and was signed into action by Franklin D. Roosevelt in 1935. Today the Social Security Program is the largest expenditure in the federal budget. The social security tax rate on benefits depends on one’s income. If one makes less then $25,000 on a single return or less than $32,000 on a joint return then they will not pay Social Security benefit taxes. People who have incomes that fall between $25,000 to $34,000 will be taxed on up to 50% of their benefits. And then people who have incomes over $34,000 can be taxed on up to 85% of their benefits. There are options on how to be taxed on benefits and these are by either paying quarterly or by asking the federal government to withhold federal income taxes from the retirement benefits.
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