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Revision as of 22:14, 2 September 2026
Despite the new tax rate reductions belonging to the Jobs and Growth Tax Relief Reconciliation Act of 2003, the top marginal income tax bracket for many retirees is often a whopping fouthy-six.3%. Why? Because Social Security benefits are subject to income tax. Those affected are Social Security recipients who have the good fortune (misfortune?) to get subject to both the 25% tax bracket along with the 85% inclusion rate for Social Security benefits.
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If you add a C-Corporation with a business structure you can decrease your taxable income and therefore be qualified for any type of those deductions in which your current income as well high. Remember, a C-Corporation is their own individual individual.
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