There is much confusion about the U.S. federal social security law versus the U.S. federal tax law. They are two very different laws. The Social Security Act was originally passed in 1935 and is codified currently in Title 42.
The federal tax law was originally passed during the Civil War. See, The U.S. Civil War is the Origin of U.S. Citizenship Based Taxation on Worldwide Income for Persons Living Outside the U.S. ***Does it still make sense?. (Posted on April 1, 2014). The federal tax law is currently codified in Title 26.
I will provide a series of posts that highlight some of the key provisions in both laws. There are specific tax provisions under Title 26 regarding Social Security payments under Title 42.