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Version vom 5. September 2026, 04:07 Uhr


Despite the tax rate reductions for this Jobs and Growth Tax Relief Reconciliation Act of 2003, the superior marginal income tax bracket for many retirees is often a whopping 46.3%. Why? Because Social Security benefits are subject to income tax bill. Those affected are Social Security recipients who have the good fortune (misfortune?) to get subject to both the 25% tax bracket and the 85% inclusion rate for Social Security benefits. If you claim 5 personal exemptions, your taxable income is reduced another $15 thousand to $23,500.

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