{"database": "openregs", "table": "crs_reports", "rows": [["R49335", "Taxation of Social Security Benefits for Disabled Beneficiaries Aged 25 to 59", "2026-09-03T04:00:00Z", "2026-09-05T05:53:45Z", "Active", "Reports", "T. Lynn Sears", "Social Security, Tax Reform", "Social Security is a self-financing program that provides monthly cash benefits to eligible retired or disabled workers and their family members and to the eligible family members of deceased workers. Much of the discussion about taxation of Social Security benefits has been focused on beneficiaries collecting benefits based on their status as a retired worker, spouse, or widow(er). This report addresses how taxation of benefits occurs among beneficiaries receiving benefits on the basis of disability by restricting its analysis to beneficiaries aged 25-59. At age 60, individuals may become eligible as a widow(er) of a deceased worker based on age. Eligibility for benefits as a retired worker or as a spouse based on age begins at age 62.\nNearly 98% of beneficiaries aged 25-59 are eligible for Social Security on the basis of their disability as a disabled worker (on their own record) or as an auxiliary beneficiary (on another person\u2019s record), including disabled workers, disabled adult children, and disabled widow(er)s. To meet the statutory definition of disability, a worker must be unable to engage in any substantial gainful activity (SGA) due to any medically determinable physical or mental impairment that (1) is expected to result in death or (2) has lasted, or is expected to last, for at least 12 consecutive months. Approximately 78% of beneficiaries aged 25-59 are disabled workers, while 18% are disabled adult children whose disability began prior to age 22. \nTaxation of Social Security benefits began with the Social Security Amendments of 1983. The rationale for taxing Social Security benefits included improving tax equity by treating Social Security benefits more like other forms of retirement income and other income designed to replace lost wages. Further, it provided revenue to strengthen the financial solvency of the Social Security trust funds. The Congressional Budget Office estimates that in 2026, income taxes on Social Security benefits will total $120 billion, an amount equal to 7.1% of total Social Security benefits received in that year.\nUnder current law, the amount of Social Security benefits included in a taxpayer\u2019s income is calculated using a statutory formula. Up to 85% of Social Security benefits can be included in taxable income for recipients whose \u201cprovisional income\u201d exceeds either of two statutory thresholds (based on filing status). Provisional income is adjusted gross income, plus certain tax-exempt income (tax-exempt interest), plus certain income specifically excluded from federal income taxation, plus 50% of Social Security benefits. Social Security beneficiaries whose provisional income is above one of two statutory thresholds may pay federal income taxes on a portion of their Social Security benefits.\nThe statutory formula means that the amount of Social Security benefits considered taxable is determined largely by the non-Social Security income received by the beneficiary. Using 2023 income from the Current Population Survey, married beneficiaries aged 25-59 were more likely than single beneficiaries in the same age range to report that they and/or their spouse received income from earnings, pensions, and assets. Single beneficiaries aged 25-59 were more likely to report receiving public assistance, which generally is not included in provisional income. Most beneficiaries aged 25-59 who reported receiving only Social Security income were estimated to have no taxable Social Security benefits; for those who had estimated taxable benefits, the estimated taxable amount was calculated to be less than the standard deduction. \nBeing married has a substantial effect on whether a beneficiary aged 25-59 has taxable Social Security benefits. Over 85% of single beneficiaries aged 25-59 have no taxable Social Security benefits. In contrast, less than 40% of married beneficiaries aged 25-59 have no taxable Social Security benefits. Married beneficiaries aged 25-59 who had other income from sources such as earnings, pensions, or IRAs were consistently more likely to have taxable Social Security benefits than single beneficiaries aged 25-59 who had similar income sources.", "https://www.congress.gov/crs_external_products/R/PDF/R49335/R49335.2.pdf", "https://www.congress.gov/crs_external_products/R/HTML/R49335.html"]], "columns": ["id", "title", "publish_date", "update_date", "status", "content_type", "authors", "topics", "summary", "pdf_url", "html_url"], "primary_keys": ["id"], "primary_key_values": ["R49335"], "units": {}, "query_ms": 0.2927388995885849, "source": "Federal Register API & Regulations.gov API", "source_url": "https://www.federalregister.gov/developers/api/v1", "license": "Public Domain (U.S. Government data)", "license_url": "https://www.regulations.gov/faq"}