Thousands of seniors do not have to pay taxes on social security checks
Many low- and middle-income seniors will not be taxed on their Social Security check.
This is due to a new law that has been signed.
IRS: Tax refund is less than some expected this year
Where is this happening?
Michelle Lujan Grisham, the governor of New Mexico, signed House Bill 163. This will exempt people earning less than $ 100,000 from paying state taxes on their social security benefits. Read more about it here.
Couples earning less than $ 150,000 are also not taxed. The tax breaks in New Mexico alone will generate about $ 710 more annually for 115,000 seniors.
The new legislation will exempt many, but not all, from paying.
North Dakota completely abolished taxation of social security benefits by the end of 2021.
You may still be subject to state tax depending on your income if you live in one of these states:
- Colorado
- Connecticut
- Kansas
- Minnesota
- Missouri
- Montana
- Nebraska
- New mexico
- Rhode Island
- Utah
- Vermont
- West Virginia