It depends. A 30.8% effective tax on your $1,603 pension doesn’t necessarily mean you’re “in a 30.8% bracket.” It likely reflects how that income is taxed after credits/deductions and how it interacts with other income (e.g., Social Security taxation, phase‑outs, state tax, NIIT/IRMAA triggers, or witholding). Your marginal federal bracket (22%) is different from your effective rate on a single item.
More than likely, this amount is a result of more of your Social Security income being taxable because of the increase in income your pension generated. This added tax, combined with the tax your pension generated, may account for the $493 increase.
If you receive no Social Security, it may be an early withdrawal penalty if you are less than 59 1/2 years old and took an early distribution on your pension.
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