State Taxes and Social Security
There are currently 13 states that apply taxes to income from Social Security benefits. These taxes hit most people by surprise when they start collecting their already sparse benefit checks. Over half of those that collect Social Security already pay federal taxes on it, residents of these states get hit twice as hard. Most of these states do offer a few exemptions, though they are contingent on restrictions based on age and total income. It is very important to know if your state will tax you on your Social Security in retirement so that you may plan accordingly. For more information, and a list of these states, visit this article by Kenneth Kiesnoski with CNBC.