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You are here: Tax FAQ > Investments >
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Is investment income subject to Social Security tax?
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The Social Security Administration taxes your wages, salaries, tips, commissions, bonuses, and self-employment income to fund the Social Security system. Most other forms of income are NOT subject to Social Security taxes. Income from pension plans, most types of investments, unemployment benefits and sick pay escapes the long arm of the Social Security Administration. So do alimony payments.
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