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Version du 14 août 2026 à 03:31
Despite brand new tax rate reductions from the Jobs and Growth Tax Relief Reconciliation Act of 2003, the top marginal tax bracket for many retirees is really a whopping 46.3%. Why? Because Social Security benefits are subject to income tax. Those affected are Social Security recipients who have the good fortune (misfortune?) to get subject to both the 25% income tax bracket and also the 85% inclusion rate for Social Security benefits.
The more you earn, the higher is the tax rate on what you earn. In 2010-you have six tax brackets: 10%, 15%, 25%, 28%, 33%, and 35% - each assigned to a bracket of taxable income.
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