what type of tax is used as income by retired p...

The type of tax that is used as income by retired people and people with disabilities is the Social Security tax (i.e., payroll taxes that fund Social Security benefits in the U.S.).

Quick Scoop

• Workers and employers pay Social Security tax out of wages during working years.

• That tax money goes into the Social Security system, which then pays monthly benefits to:
  • Retired workers
  • Disabled individuals
  • Certain dependents and survivors

• For many retirees and people with disabilities, these Social Security benefits become a key source of income in later life.

In short, while people pay Social Security tax during their careers, that same tax is what finances the income they receive in retirement or when disabled.

So, to answer the question directly: the tax used as income by retired people and people with disabilities is the Social Security tax, which funds their Social Security benefit payments.

Information gathered from public forums or data available on the internet and portrayed here.