The first SS check was issued in Jan 31, 1940 for a total sum of $22.54 and employees & employers each paid 1% of the first $3,000 a person earned.
By the time I graduated college (1970) SS taxes were 4.6% of the employee’s first $7,800 and of course the employer had to pay a equal amount.
Prior to 1984, Social Security benefits were entirely exempt from federal income taxes
The new tax policy established that beneficiaries with total income exceeding certain thresholds would be required to pay federal income tax on a portion of their benefit income
The initial thresholds set in 1983 were:
- Single beneficiaries with modified adjusted gross income greater than $25,000
- Married couples filing jointly with modified adjusted gross income greater than $32,000
For those above these thresholds, up to 50% of their Social Security benefits became subject to federal income tax
In 1993, additional legislation extended the taxation of benefits:
- It increased the taxable portion from 50% to 85% for higher-income beneficiaries
- New thresholds were introduced: $34,000 for single filers and $44,000 for joint filers
It’s worth noting that these income thresholds have not been indexed for inflation since their introduction, which has resulted in an increasing proportion of beneficiaries becoming subject to this tax over time
Today that $32,000 trigger in 1984 to require the person to pay taxes on 50% of their SS income, would be ~ $98,000 in 2024
Today that $44,000 trigger in 1993 to require the person to pay taxes on 85% of their SS income, would be ~ $96,000 in 2024
The average couple receiving social security would get ~ $46,000/yr. in 2023, and the average couple back in 1993 would get ~$15,300/yr.
BTW, a fellow by the name of Joe Biden was in our Senate and voted for both of these increase in taxes, and voted not to index the income dollars at which SS income would be considered taxable.
After getting the notice that those on SS would get a 2.5% increase as of the first of Jan 2025. So I put all the $$ figures into a spread sheet. All that I could compare is Medicare Part B premiums, deductible and our supplement premium and deductible and off course our Part D premium and deductible.
I won’t bother you with the RAW DOLLARS, but collectively all those fixed costs, will be ~ 2.5 times in 2025 than they were in 2024! So, what is suppose to be a COST OF LIVING INCREASE… will not cover the increase in our basic healthcare costs.
In regards to our medication, our Part D deductibles and premiums will be close to $2,000 for 2025, before we get the first PENNY in coverage for our medications.
Filed under: General Problems
Oh it not just those w/SS…..HUBBY,, gets a 3 buck raise,,,but,,,they take away all overtime and up thee insurance premiun to 500,,,,from 240,,soooooo,,,wheres the raise????maryw
That seems the way our country has been running and President Trump plans to fix a lot. President Steve you should tell him.
This 73 year old Social Security recipient thinks this is outrageous. For decades we paid into the program and for that we get a slap in the face.