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.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.