People know some of their retirement income will be subject to federal and state taxes. What they may not know is that 10 states tax Social Security benefits. The Motley Fool cautions retirees to take that into consideration if they’re thinking of moving.
Remember, you’ll wind up paying taxes virtually everywhere on other types of retirement income like pensions, IRA, and 401(k) distributions, as well as interest and dividends. Here are the states that tax Social Security benefits:
- Colorado
- Connecticut
- Kansas
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
Each state has specific rules for taxing these benefits and they vary widely. If you’re planning to rely primarily on Social Security for retirement income, knowing how any given state might tax you is worth investigating. If you find the variations in taxation in different states confusing, it might be worthwhile to consult a financial or tax professional before deciding on your ultimate retirement location.
Council of Seniors Wants Senior Life to be Fulfilling
Having the money you need in retirement is key. Here at Council of Seniors, we’re fully committed to getting Congress to pass The SAVE Benefits Act. This legislation is critical because the annual Social Security cost-of-living adjustment (COLA) has been inadequate in recent years. Once it passes, seniors will be reimbursed the $581 withheld from them.
Signing our petition is the best way to start helping, Tell others we need them too! Congress has ignored the growing number of Americans expecting action for way too long.
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