Report on the Taxation of Social Security and Railroad Retirement Benefits inCalendar Years 1987 and 1988. Report to the Congress, the Secretary of Health and Human Services and the Railroad Retirement Board

摘要

Beginning in January 1984, social security and railroad social securityequivalent benefits have been partially taxable for high-income taxpayers. The Treasury Department is required to estimate the individual income tax liabilities attributable to the benefits payable during each calendar quarter and transfer these amounts to the Federal Old-Age and Survivors Insurance (FOASI), Federal Disability Insurance (FDI), and Social Security Equivalent Benefit Account (SSEBA) trust funds at the beginning of the quarter. Both the taxation of benefits and the transfers of taxes to the trust funds are required by the Social Security Amendments of 1983 (P.L. 98-21), as amended by the Railroad Retirement Solvency Act of 1983 (P.L. 98-76) and the Consolidated Budget Reconciliation Act of 1985 (P.L. 99-272). The report describes the methodology used to determine the transfers to the trust funds of calendar year 1987 and 1988 income tax liabilities, adjustments to the transfers for those and prior years, and a forecast of transfers between 1989 and 1993.