Despite the new tax rate reductions from the Jobs and Growth Tax Relief Reconciliation Act of 2003, the top marginal income tax bracket for many retirees can be a whopping fouthy-six.3%. Why? Because Social Security benefits are subject to income in taxes. Those affected are Social Security recipients who have enough good fortune (misfortune?) always be subject to both the 25% taxes bracket and the 85% inclusion rate for Social Security benefits. It's important to note that ex-wife should...

Despite the new tax rate reductions from the Jobs and Growth Tax Relief Reconciliation Act of 2003, the top marginal income tax bracket for many retirees can be a whopping fouthy-six.3%. Why? Because Social Security benefits are subject to income in taxes. Those affected are Social Security recipients who have enough good fortune (misfortune?) always be subject to both the 25% taxes bracket and the 85% inclusion rate for Social Security benefits. It's important to note that ex-wife should...