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Thread: IRMAA not worth getting excited over unless LARGE IRA
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Old 10-17-2023, 05:17 AM
spinner1001 spinner1001 is offline
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Originally Posted by GoRedSox! View Post
It is not 37% on all your income, though, only the portion of your income over $693,750 for couples or over $578,125 for singles. And if your income is coming from qualified dividends, the top rate is 15% for that income unless you make over $553,851 for couples, or $492,301 for singles. Above that, your qualified dividends are still only taxed at 20% plus the aforementioned NIIT of 3.8% on the investment income for couples over $250,000. I just think it’s misleading to throw 41.8% out there, no one is actually paying that much across all their income.
For people in the top 10% of adjusted gross income (AGI), the average US income tax rate for 2020 (latest available data) was 20.3% of AGI.

https://www.irs.gov/pub/irs-soi/20in41ts.xls