Careful where you retire – some states tax Social Security benefits
Most who collect benefits know that the Federal Government levies income taxes on Social Security benefits if certain very low income thresholds are exceeded. And while it’s true that 37 states do not tax Social Security benefits, it’s also true that 13 states do include Social Security benefits as part of your taxable income, so you may want to consider that when you’re choosing where to spend your golden years. But even among the 13 states that do include Social Security as taxable for state income tax purposes, there are 4 which offer exceptions which may mean that most retirees won’t see their Social Security taxed. This Motley Fool article by Sean Williams explains – click here to read more.