Office of the Chief Actuary 

Social Security AdministraƟon 

 Based on the 2023 Trustees Report Intermediate AssumpƟons 

These provisions revise the current rules for subjecƟng Social Security benefits to 

personal income tax. For each provision, we provide an esƟmate of the financial effect 

on the OASDI program over the long-range period (the next 75 years) and for the 75th 

year. We base all esƟmates on the intermediate assumpƟons described in the 2023 

Trustees Report. 

H Provisions AffecƟng TaxaƟon of Benefits 
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

H2 0.20 0.16 5% 4%

H4 -0.09 -0.01 -3% -0%

H5 0.01 0.01 0% 0%

H6 -0.58 -1.04 -16% -24%

H7 -0.15 -0.01 -4% -0%

Category H: Taxation of Benefits (2023 Trustees Report intermediate assumptions)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Increase the threshold for taxation of OASDI benefits to $50,000 for single 

filers and $100,000 for joint filers starting in 2025. Taxation of benefits 

revenues transferred to the Hospital Insurance (HI) Trust Fund would be 

the same as if the current-law computation applied.

Beginning in 2030, for single/head-of-household/married-filing-separate 

taxpayers with MAGI of $250,000 or more and joint filers with MAGI of 

$500,000 or more, include up to the remaining 15 percent of Social 

Security benefits in taxable income (increased from up to 85 percent of 

benefits taxable under current law). In subsequent years, update these 

thresholds for growth in wages (AWI). Revenue from this provision would 

be credited to the Social Security trust funds. Current law taxation of up 

to 85 percent of Social Security benefits would remain unchanged.

Eliminate federal income taxation of OASDI benefits that is credited to the 

OASI and DI Trust Funds for 2054 and later. Phase out OASDI taxation of 

benefits by increasing relevant income thresholds from 2045 through 

2053 as follows, for single/joint tax filers: (a) 2045 = $32,500/$65,000; (b) 

2046 = $40,000/$80,000; (c) 2047 = $47,500/$95,000; (d) 2048 = 

$55,000/$110,000; (e) 2049 = $62,500/$125,000; (f) 2050 = 

$70,000/$140,000; (g) 2051 = $77,500/$155,000; (h) 2052 = 

$85,000/$170,000; and (i) 2053 = $92,500/$185,000. Taxation of 

benefits revenues for the Hospital Insurance (HI) Trust Fund would be 

maintained at the same level as if the current-law computation applied.

Replace the current-law thresholds for federal income taxation of OASDI 

benefits with a single set of thresholds at $50,000 for single filers and 

$100,000 for joint filers for taxation of up to 85 percent of OASDI 

benefits, effective for tax year 2025. These thresholds would be fixed and 

not indexed to price inflation or average wage increase. Reallocate a 

portion of revenue from taxation of OASDI benefits to the HI Trust Fund 

such that the HI Trust Fund would be in the same position as if the 

current-law computation (in the absence of this provision) applied. The 

net amount of revenue from taxing OASDI benefits, after the allocation to 

HI, would be allocated to the combined Social Security Trust Fund.

Starting in 2024, tax Social Security benefits in a manner similar to private 

pension income. Phase out the lower-income thresholds during 2024-

2043.

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions