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Version du 13 mai 2026 à 06:56
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Despite the tax rate reductions among the Jobs and Growth Tax Relief Reconciliation Act of 2003, the top marginal tax bracket for many retirees can be a whopping 46.3%. Why? Because Social Security benefits are subject to income tax. Those affected are Social Security recipients who purchase the good fortune (misfortune?) to be subject to both the 25% taxes bracket and the 85% inclusion rate for Social Security benefits.
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If you claim 5 personal exemptions, your taxable income is reduced another $15 thousand to $23,500. Your earnings tax bill is those approximately 3,000 dollars.
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