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The 37 states that do not tax social security schemes



Social security benefits are an important source of income for retirees, and chances are good, you need your social security benefits to sustain you as a senior. Since you probably want to rely on social security ̵

1; and since you pay into social security throughout your life – you will rightly get all the money you can from this important government program.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The bad news is, in some states, You are taxed on your benefits and need to give you some of your hard earned money to your state, but the good news is that you do not have to pay state taxes on benefits if you live in one of 37 states that are not taxing social security. "data-reactid =" 12 "> The bad news is that in some states you are taxed on your benefits and have to give you some of your hard earned money for your state. But the good news is that you do not have to pay state taxes on benefits if you live in one of 37 states that do not tax social security.

So are you fortunate enough to live in a state where your local authority lets you keep all the pension funds Uncle Sam dole out to you?

Money sitting on top of Social Security card.

Image Source: Getty Images. 19659008] These are the 37 states that do not pay social benefits

Those states that do not pay social benefits are Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois USA, Indiana, Iowa , Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas

< p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "That means 13 says that takes taxes on your social security benefits are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia. them – Minnesota, North Dakota, Vermont and West Virginia – use the same rules as the IRS to determine if you are taxed safely deordninger. The other states have their own individual guidelines. & Nbsp; "data-reactid =" 28 "> This means that the 13 states that do tax your social security benefits are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia: Of these 13 states, four of them – Minnesota, North Dakota, Vermont, and West Virginia – use the same rules as the IRS to decide whether to tax on social security, while the other states have their own individual guidelines.

And here is when you are taxed by the IRS

If you are lucky enough to live in one of the 37 states that do not want to tax your social security benefits, this does not mean that you will always go free. may end up paying money to the IRS on your benefits, if your income reaches a certain limit.

There are several good news, though: the IRS does not count all your income when deciding whether to be taxed on the benefits. income basis by posting on half of your social security benefits, all your taxable income from other sources, and some tax-free income such as bond yields. Tax-free distributions from a Roth IRA are not billed.

If your income is over $ 32,000 for cohabiting or over $ 25,000 for other filing statuses, you may be charged up to 50% of your social security benefits. If your income exceeds $ 44,000 for married filers or $ 34,000 for other filing statuses, you may be taxed up to 85% of your earnings.

If your earnings are below these limits, you don't have to worry about paying the IRS – so you just have to figure out the rules to tax the benefits in your state.

Low tax on social insurance can give you more financial freedom

<p class = "lerretskomponent lerrettekst Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " If you live in one of the 37 countries that do not pay social benefits, you are fortunate – you will have to keep your deserved retirement benefits so your money stretches a little longer If you are not so lucky and you take a big tax stroke, you will maybe looking to move to a state that is more taxable for retirees . & nbsp; "data-reactid =" 35 "> If you live in one of the 37 countries that do not tax social benefits, you are Lucky – you get to keep your deserved retirement benefits so your money goes a little further. If you are not so lucky and you are taking a big tax stroke, you may want to look at moving to a state that is more taxable for senior citizens.

The less of a stroke you take because of taxes, the more money you have to enjoy your life as a senior. But only if you can determine whether the tax benefits of a move are worth the upheaval.

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<p class =" canvas-atomic text Mb (1.0em) Mb em) – sm "type =" text "content =" Motley Fool has a disclosure policy . "data-reactid =" 45 "> Motley Fool has a disclosure policy.


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