Taxes on Investment Income and Social Security

Taxes on Investment Income and Social Security

Perhaps the most highly taxed US citizens are middle-income social security recipients. Consider a retired couple earning $32,000 per year before including investment income. For each dollar of investment income the couple is taxed not only on the investment income but also an additional 50% on their social security income. A retired couple earning $44,000 per year is taxed an additional 85% on social security income. The combined effect can reach a Federal marginal income tax rate of over 46% – much higher than the highest tax bracket for the rich!
Biltmore Capital Advisors LLC is not a tax or accounting firm. Please consult your tax advisor to determine if these facts are relevant to your particular situation.
 

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