Age 64. We have a joint filing of $23,724 SS and $40,030 1099R. When adding a $3000 withdrawal from IRA we are taxed 28% of the $3000. Why is the % is so great?

[MichaelL1 · Accepted solution]

What is actually happening is when the 1099R income is being added, more of the Social Security income is becoming taxable (as up to 85% of Social Security can be taxable, however, it is determined by the amount of the other income on the tax return) so, you are adding $3,000 of income and also more Social Security as taxable income.

Your income has you actually in the 15% tax rate.

https://taxfoundation.org/2017-tax-brackets/

Please see this for more details on the Social Security being taxable.

https://ttlc.intuit.com/replies/3299920