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Revision as of 23:16, 6 May 2026

Despite brand new tax rate reductions among the Jobs and Growth Tax Relief Reconciliation Act of 2003, the top marginal tax bracket for many retirees is really a whopping forty six.3%. Why? Because Social Security benefits are subject to income tax bill. Those affected are Social Security recipients who purchase the good fortune (misfortune?) to be subject to both the 25% income tax bracket along with the 85% inclusion rate for Social Security benefits.

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Some people receive a huge fat refund every year because considerably is being withheld their own weekly or bi-weekly paydays. It wasn't until a few back that an associate of mine came and asked me why Did not worry significantly about the $275 tax refund I received.

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