Despite the tax rate reductions from the Jobs and Growth Tax Relief Reconciliation Act of 2003, helpful ideas marginal income tax bracket for many retirees is really a whopping 46.3%. Why? Because Social Security benefits are subject to income tax bill. Those affected are Social Security recipients who check out good fortune (misfortune?) end up being subject to both the 25% taxes bracket and the 85% inclusion rate for Social Security benefits. Minimize taxes. When it comes to taxable income ...