Should you stay away from specific states due to benefit taxes? Some people aim to save enough money so that Social Security is no longer a concern for them – that is, they don’t care what benefit they receive when they retire. However, Social Security is a lifeline for many seniors, so doing everything you can to maximize your payout is critical.
You can now take a variety of steps to increase your benefits. For one thing, you can put off filing for Social Security until you’re 70 years old. Waiting that long will pay off handsomely, and the boost you get is yours to keep for the rest of your life.
Another thing you may do to get better benefits is to avoid residing in a state that taxes them. Although most states do not tax Social Security benefits, 13 do, and knowing what states are on that list can help you keep more of your money.
You might want to avoid these states.
These 13 states tax Social Security benefits:
- Colorado
- Connecticut
- Kansas
- Minnesota
- Missouri
- Montana
- Nebraska
- New Mexico
- North Dakota
- Rhode Island
- Utah
- Vermont
- West Virginia
However, this list does not tell the complete story. Many of these states provide an exemption for low- and even moderate-income taxpayers. As a result, if Social Security accounts for the majority of your retirement income, you may not be subject to state taxes regardless of where you choose to live.
But what if you’re counting on your retirement assets to provide a constant source of income? If you retire in one of the states listed above, you may face taxes on your Social Security income. Even if this is the case, you might not want to dismiss them.
Several of these states have other advantages, such as a low cost of living. Furthermore, even if you can avoid paying state taxes on your Social Security benefits, that income may be subject to federal taxation.
The income levels for federal taxes on Social Security benefits are quite low. So, if you’re already planning to pay them, state taxes might not be a deal-breaker.
Prepare yourself.
Some seniors are astonished to find that some states tax Social Security benefits. However, many people are surprised to learn that such benefits are subject to federal taxes as well.
You don’t have to retire in one of the 13 states that tax Social Security benefits. However, you should investigate that tax rate to see if you are eligible for an exemption.
Reading up on the costs you’ll face in retirement will help you plan ahead of time, and you’ll be better prepared to prevent financial stress and make any living arrangement work.
Contact Information:
Email: [email protected]
Phone: 3234811328
Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.
Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’
Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.
Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.
He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.
► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
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Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.
