THIS may come as a nasty surprise to some — but some states may tax your Social Security benefits.
Starting January, 2022 average Social Security benefits will increase by $92 – from $1,565 to $1,657 a month.
Approximately 8 million Americans claiming Supplemental Security Income (SSI) will also receive an increase in payments through COLA.
Seniors have paid into the Social Security system all their lives and probably don’t want to pay anything or pay as little as possible to the government so they can enjoy retirement with as much money as possible.
Fortunately, most states allow seniors to enjoy tax-free benefits.
We have listed all 37 below:
- New Hampshire
- New shirt
- New York
- North Carolina
- South Carolina
- South Dakota
If you happen to live in one of 13 states not on the list – you may be wondering if you will face taxes.
Some states may issue taxes on your Social Security check depending on your adjusted gross income.
For example, people living in Kansas will need to pay taxes on their benefits if their AGI is $75,000 or more.
You can check with your revenue department to see if you may owe tax on your Social Security payments – if your state isn’t on the list above.
What about federal taxes?
While many Americans can avoid paying their state – you may have to pay federal taxes.
This may depend on your temporary income, which includes AGI combined with any non-taxable gains plus half of your Social Security benefits.
If your provisional income exceeds $25,000, or $32,000 for married couples, you may be taxed up to 50% of your benefits.
Individuals with provisional income over $34,000 and married couples over $44,000 may be subject to tax up to 85% of the benefit.
However, there is a specific formula used to calculate How much do you really owe?
You can also use the Social Security Administration of tools to calculate your benefits.
We explain how much you will Losing by withdrawing money from your retirement account too soon.
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https://www.the-sun.com/money/4263949/states-not-tax-social-security/ Which states do not tax Social Security?