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Despite the new tax rate reductions from the Jobs and Growth Tax Relief Reconciliation Act of 2003, tips for sites marginal income tax bracket for many retirees is really a whopping 46.3%. Why? Because Social Security benefits are subject to income financial. Those affected are Social Security recipients who have enough good fortune (misfortune?) to be subject to both the 25% tax bracket and the 85% inclusion rate for Social Security benefits.
B) Interest earned, instead of paid, throughout a bond year, must be accrued at the end of the bond year and reported as taxable income for that calendar year in which the bond year ends.
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