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|Subject: Re: social security||Date: 7/13/2001 3:43 PM|
|Author: zzyp||Number: 7110 of 20077|
Concerning your post to the Retired Fools board (#3047 3/21/2000),
I tried to verify your figure of a 52% tax rate using your assumptions:
"married retired couple age 63 and 66, with a SS income of $20K and the assumption that all income was classed as ordinary (that from an IRA or dividends, etc.)".
With an income of $43K you reported an incremental tax rate of 52%.
However, I put these same figures, granted using a tax program for year 2000, in and I showed a tax of $6,565. Then I increased the income to $43,100 and tax was 6,559, a difference of $26, corresponding to a 26% incremental rate.
What did I do wrong, or was your calculation in error? I know of no changes between 1998 and 2000 tax rules to cause this difference. Has there been a correction in the tax laws since 1998 to aleviate this problem?
Other Retired Fools can reply.
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