Some retirees are probably aware that part of their Social Security benefits can be taxed by the federal government if their income exceeds certain limits. What they may not realize is there are 13 states that can tax those benefits as well.
Here are the states that tax Social Security benefits:
- Colorado
- Connecticut
- Kansas
- Minnesota
- Missouri
- Montana
- Nebraska
- New Mexico
- North Dakota
- Rhode Island
- Utah
- Vermont
- West Virginia
If you live or decide to retire in one of those states, there’s no guarantee you will pay taxes on Social Security. Each state has its own method to determine which seniors’ benefits will be taxed. It all comes down to your adjusted gross income.
Be sure to check your state’s rules to see where you stand in terms of tax liability.
If you have income other than Social Security, you should pay attention to how much you withdraw from retirement accounts and if that will put you over the state limit for income that isn’t taxable. If you think you may have liability, put aside some savings so you’ll be able to cover the bill when it comes due.
We Want More Benefits for Seniors
Council of Seniors is working tirelessly to get Congress to pass The SAVE Benefits Act. We need to make sure the annual Social Security cost of living adjustment (COLA) keeps up with inflation. In some recent years, it hasn’t. If it’s passed, this bill will reimburse seniors $581, money that should have been paid all along.
Take time right now to sign our petition. Congress must learn about the growing number of people who support this bill. Your help will be deeply appreciated.
Are you informed about tax rules that may affect your Social Security benefits? Leave us a comment and let us know.
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