@Markp123 wrote:
I have wade income, interest, dividends, pension and social security nothing exotic.
It is not straight forward at all or simple. "Marginal tax rate" is a rather meaningless term when you have a mixture like that.
1) Dividends are taxed at the qualified divided and capital gains rate, not the tax schedule.
2) Additional income can cause a greater percentage of Social Security to become taxable. The amount of SS that is taxable is not based on the tax schedule, but the taxable social security worksheet.
The tax rate schedule is not used when dividends and social security are involved so margional tax rate becomes rather meaningless.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
