State Income Tax on Social Security Benefits
While no one suggests you change where you live because of it, some U.S. states levy an income tax on retirement income, including Social Security benefits. Fortunately, the list of states which do not tax Social Security benefit is longer – thirty-eight states don’t tax your SS benefits – but there are still a baker’s dozen which do. This Forbes article by certified financial planner David Rae discusses how state taxation of retirement benefits works, and also explains how Federal taxation of Social Security benefits may impact your federal income tax obligation. Click here to read more.