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Latest revision as of 19:27, 22 September 2024
Despite the new tax rate reductions for this Jobs and Growth Tax Relief Reconciliation Act of 2003, leading marginal income tax bracket for many retirees is really a whopping forty-six.3%. Why? Because Social Security benefits are subject to income in taxes. Those affected are Social Security recipients who have enough good fortune (misfortune?) to be subject to both the 25% income tax bracket and the 85% inclusion rate for Social Security benefits.
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With a C-Corporation in place, transfer pricing can certainly use its lower tax rates. A C-Corporation begins at a 15% tax rate. If your tax bracket is higher than 15%, require it and it be saving on industry. Plus, your C-Corporation can be used for specific employee benefits that performs best in this structure.
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