Income Tax on Social Security – more than just the Feds
Paying federal income tax on Social Security benefits is often one of those “are you kidding me?” moments for retirees. The thresholds have not been adjusted for inflation since 1994, though the tax was first implemented in 1983 legislation. Thus, more retirees are ensnared each year by tax. But as Adam Levy notes here, twelve states also tax benefits to some degree. It’s something to keep in mind as you try to plan, estimate, and budget in retirement. Full article on how each of the 12 states handles taxes here.