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Version vom 31. August 2026, 19:13 Uhr


Despite fresh tax rate reductions from the Jobs and Growth Tax Relief Reconciliation Act of 2003, the superior marginal tax bracket for many retirees can be a whopping 46.3%. Why? Because Social Security benefits are subject to income in taxes. Those affected are Social Security recipients who check out good fortune (misfortune?) pertaining to being subject to both the 25% income tax bracket and also the 85% inclusion rate for Social Security benefits.

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