Page 87 - Ready Set Retire

Ready. Set. Retire!
The second point involves taxes on Social Security benefits.
When we talk about taxation of 85% or 50% of Social Security,
it does not mean a tax rate of 85% or 50%. It means 85% or
50% of your Social Security benefit is subject to taxation at
whatever your effective tax rate is. So, if you have a benefit of
$35,000, and 15% effective tax rate, and 50% taxability on
Social Security, your tax calculation would look like this:

$35,000 x .5 x .15 = $2,625

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