Paying Taxes Can Tax The Best Of Us: Difference between revisions
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Revision as of 06:34, 6 January 2025
Despite the new tax rate reductions belonging to the Jobs and Growth Tax Relief Reconciliation Act of 2003, leading marginal tax bracket for many retirees is a whopping 46.3%. Why? Because Social Security benefits are subject to income taxation. Those affected are Social Security recipients who hold the good fortune (misfortune?) to get subject to both the 25% tax bracket along with the 85% inclusion rate for Social Security benefits.
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