Tax credits social security income for tax credit purposes taxable social security benefits are taken into account as income and non taxable benefits are ignored the tc600 guidance notes page 11 show which benefits to include. News came president obama and republicans agreed to a payroll tax holiday in 2011 for one year only an employees portion of the social security tax will be reduced from 62 to 42 this will replace the making work pay tax credit in effect in 2009 and 2010 making work pay is a flat tax . This welfare reform legislation signed by the president on 8 22 96 ended the categorical entitlement to afdc aid to families with dependent children that was part of the original 1935 social security act by implementing time limited benefits along with a work requirement the law also terminated ssi eligibility for most non citizens
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