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Revision as of 03:47, 24 July 2026

Despite fresh tax rate reductions for this Jobs and Growth Tax Relief Reconciliation Act of 2003, the superior marginal tax bracket for many retirees is often a whopping forty-six.3%. Why? Because Social Security benefits are subject to income in taxes. Those affected are Social Security recipients who hold the good fortune (misfortune?) to be subject to both the 25% tax bracket and also 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. Your income tax bill is will be approximately 3300 dollars.

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