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Revision as of 05:27, 5 August 2026
Despite the tax rate reductions among the Jobs and Growth Tax Relief Reconciliation Act of 2003, leading marginal income tax bracket for many retirees is a whopping 46.3%. Why? Because Social Security benefits are subject to income taxation. Those affected are Social Security recipients who have the good fortune (misfortune?) pertaining to being subject to both the 25% tax bracket as well as the 85% inclusion rate for Social Security benefits.
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Make sure you know the exemptions related to the bond university. For example, municipal bonds are generally exempt from federal taxes, and always be exempt from state and native taxes any time you genuinely resident belonging to the state.
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