Retirees in these 13 states are at risk of losing some of their Social Security checks | Personal Finance – Community News
Social Security

Retirees in these 13 states are at risk of losing some of their Social Security checks | Personal Finance

Each state has its own rules for determining which seniors owe taxes on their Social Security benefits. For example, Kansas residents with adjusted gross income (AGI) of $75,000 or less pay no tax on their distributions.

If you live in one of the states listed above, it’s a good idea to contact the Department of Revenue to find out how much, if any, you owe.

Don’t Forget Federal Distribution Taxes

Even if you don’t pay state taxes, there’s still a chance the federal government will tax your Social Security benefits. This depends on your preliminary income, which is your AGI, plus any non-taxable interest and half of your Social Security benefits.

Individuals with a provisional income of more than $25,000 and married couples with a provisional income of more than $32,000 may face taxes on up to 50% of their Social Security benefits. Single adults with a provisional income of more than $34,000 and married couples with a provisional income of more than $44,000 may be subject to tax on up to 85% of their benefits.

But again, just because you could pay tax on that much, doesn’t mean you will. There is a complex formula that determines how much you actually pay, but that is beyond the scope of this article. Here’s an introduction to Social Security benefits for those who want to learn more.

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