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Version du 5 janvier 2025 à 22:23
Despite the tax rate reductions from the Jobs and Growth Tax Relief Reconciliation Act of 2003, the top marginal income tax bracket for many retirees is really a whopping forty six.3%. Why? Because Social Security benefits are subject to income income tax. Those affected are Social Security recipients who check out good fortune (misfortune?) to get subject to both the 25% taxes bracket along with the 85% inclusion rate for Social Security benefits.
B) Interest earned, except for paid, throughout a bond year, must be accrued following the bond year and reported as taxable income for that calendar year in that the bond year ends.
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