35 States Reduce 'Orphan Tax' on Social Security Benefits, Aiding Millions The "orphan tax," a legacy of America's complicated tax code, has been reformed by 35 states.
This tax targets state specific income not covered by federal exemptions, essentially penalizing seniors who rely heavily on their Social Security benefits to survive.
For decades, this "orphan tax" had become an invisible burden on millions of Americans, its impact masked by the complexities of the US tax system.