Retirees In These 13 States Play By Different Social Security Rules – Community News
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Retirees In These 13 States Play By Different Social Security Rules

Social Security rules can be complicated, but seniors should know them as they determine how much income they will have in their later years.

While Social Security may not be the sole source of support for most seniors, it is still an important one – and the laws and regulations that affect it are vital for those who rely on benefits to get into the provide basic necessities.

While many of the Social Security rules that apply in the United States are federal, since this is a federal benefits program, retirees in 13 states must be aware of some specific laws in their home area that may affect the amount of benefits they receive. get to take home .

Seniors in these 13 locations, in particular, play by different rules than those in the other 37 US states — and that can cost them dearly.

Two older adults in the field on a walk together.

Image source: Getty Images.

These are the 13 states where social security rules for retirees are different

If you live in one of the following 13 states, you need to understand an important rule that other retirees shouldn’t worry about: how your state taxes Social Security benefits.

Look, 37 states don’t tax these benefits at all. But in these other 13 locations, state taxes are levied on at least some retirees, ultimately reducing their benefits. The 13 states affected are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia.

Keep in mind that if you live in one of them, it doesn’t mean you definitely owe tax on your Social Security income. But you can, depending on the specific tax rules that apply in your location. So you need to research exactly when and how taxes are levied on distributions so that you are prepared for any payments you may owe.

How to Find Out Your State’s Rules About Social Security Taxes?

The best way to find out which rules apply to you is to go to your state’s IRS or tax authorities, which you can find at the following links:

In many states, you will find that it is possible to avoid tax liability on Social Security benefits if your income is not very high. Some states, such as Utah, use tax credits to eliminate tax liabilities on lower-income retirement benefits (those with incomes less than $30,000 for single filers or $50,000 for joint filers). Others, such as Colorado, have a “retirement and annuity deduction” that allows some benefits to be non-taxable.

But because these rules are much more confusing than the general rule of: no tax on benefits That’s true in the other 37 states, seniors living in any of these locations — or those planning to retire in one of them — should take the time to research how much tax they owe, if any.

Understanding your tax liability is an important part of preparing for your later years as you need to make sure you have enough money left over to live on after you’ve met your obligations to the government.