Ten million taxpayers are inside the Social Security benefits “tax torpedo”. This is where if more income is taken, more Social Security benefits are taxable. Such taxpayers can have a marginal federal tax rate of 40.7 percent or 49.95 percent even though they don’t have very high taxable income.
06.21.2022 - Torpedo
The Social Security "Tax Torpedo"
Presented by Greg Geisler, PhD, CPA (Inactive), Indiana University