States Taxing Social Security Benefits and How It Could Affect You
States Tax Treatment of Social Security Benefits
40 states and the District of Columbia do not tax Social Security benefits. The 10 states that do tax such benefits are Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
Exemptions and Exceptions
States with taxation on Social Security benefits often provide breaks or exemptions based on age or income levels. For example, Kansas taxes benefits for those with an AGI above $75,000.
Consult with Professionals
Given the complexity of these rules and potential changes, consulting with a tax lawyer or CPA is advisable, especially when unsure. Understanding these tax implications can help in making informed financial decisions for retirement planning.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.