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In addition, a portion of your Social Security benefits are included in gross income, regardless of your filing status, in any year the sum of half your Social Security plus all other income, including tax-exempt interest, exceeds $25,000 or $32,000 if you are married.
A: The Democratic Party. Prior to 1984, income derived from Social Security benefits was exempt from taxation. Amendments to the Social Security Act passed by Congress in 1983 allowed for 50% of Social Security benefits to be considered taxable income for taxpayers whose total income exceeded specified thresholds.