Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Public Sector Retirement - PSR - Here's Complete Information on Which States do and do Not Tax Income from Social Security Benefits

Here’s Complete Information on Which States Do and Do Not Tax Income from Social Security Benefits. By: Marvin Dutton

[vc_row][vc_column][vc_column_text]The Tax Foundation recently released a report that mentions the names of the states that do and do not impose a tax on income from Social Security benefits. In this article, we have included all states and cleared which states will tax or not tax your Social Security benefits. 

All of us know that information on taxes is always complicated. Some states are not imposing a tax on Social Security benefits income, and some do not include Social Security income as a part of their calculation for taxable income. Some states follow the same procedure as followed by the federal government, and some states have exempted Social Security income for different reasons. 

The states that do not tax income from the Social Security benefits federal taxable income are Delaware, Arizona, Idaho, Massachusetts, South Carolina, Illinois, New York, Ohio, Oklahoma, Colorado, Georgia, and Virginia.

States that tax income in the same way as taxed by the federal government are Utah and Nebraska. 

States that offer exemption have been discussed in the report given by the Tax Foundation: 

Connecticut offers an exemption for federal adjusted gross income (AGI) taxpayers with income below $75,000 (single tax filers) or $100,000 (joint filing).

Kansas offers an exemption for federal AGI of $75,000 (single and joint tax filers both) 

Minnesota has its graduated system of exemptions in case the provisional income of a person is under $81,180 (single tax filer) or $103,930 (joint filing).

Missouri offers 100% tax income exemption on Social Security benefits provided the taxpayer is 62 years or older and annual income below $85,000 (single tax filer) or $100,000 (joint filing). 

North Dakota offers subtractions when the AGI is below $50,000 (single tax filer) or $100,000 (joint tax filing).                                                  

Rhode Island offers a tax exemption for taxpayers who have attained full retirement age and have a federal Annual Gross Income of below $81,900 (single tax filer) or $102,400 (joint filing). 

Vermont State has its graduated system to offer an exemption of Social Security income if the income of an individual paying taxes is under $34,000 (single tax filer) or $44,000 (joint filing).

West Virginia is a state which currently imposes a tax on Social Security income, but under a new law, that is being phased out, and will utterly exempt income from state taxes starting in 2022.[/vc_column_text][/vc_column][/vc_row]

M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

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