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Latest revision as of 02:46, 23 September 2024

Despite fresh tax rate reductions of your Jobs and Growth Tax Relief Reconciliation Act of 2003, the superior marginal income tax bracket for many retirees is often a whopping forty six.3%. Why? Because Social Security benefits are subject to income tax bill. Those affected are Social Security recipients who include the good fortune (misfortune?) end up being subject to both the 25% tax bracket along with the 85% inclusion rate for Social Security benefits.

What everyone knows as your 'income' tax has two tax brackets each using its own tax rate from 10% to 35% (2009). These rates are employed to your taxable income which is income throughout your 'tax free' earnings.

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