As of 2024, ten states still tax Social Security benefits for retirees. These states have specific criteria and exemptions that determine whether benefits are taxed, usually based on income levels. Here are the states and their general taxation rules:
- Colorado: Social Security income is taxable, but retirees aged 55 to 64 can deduct up to $20,000, and those 65 and older can deduct up to $24,000.
- Connecticut: Taxes benefits if income exceeds $75,000 for singles or $100,000 for joint filers.
- Kansas: Benefits are taxed if total income exceeds $75,000, regardless of filing status.
- Minnesota: Taxes Social Security benefits for incomes above $105,380 for joint filers or $82,190 for single filers, with some subtraction rules.
- Montana: Benefits are taxed if income exceeds $25,000 for singles or $32,000 for joint filers.
- New Mexico: Taxes benefits if income exceeds $150,000 for couples or $100,000 for single filers.
- Rhode Island: Benefits are taxed if income exceeds $119,750 for couples or $95,800 for single filers who are of full retirement age.
- Utah: Social Security income is taxable, but tax credits are available to reduce liability for incomes below $75,000 for couples and $45,000 for singles.
- Vermont: Taxes benefits if income exceeds $65,000 for joint filers and $50,000 for singles.
- West Virginia: Benefits are taxed if income exceeds $100,000 for joint filers and $50,000 for singles. However, recent legislation is set to phase out this tax by 2026.
These states offer various deductions, credits, and income limits to mitigate the impact of these taxes on retirees (Retirement Living) (Tax Foundation).
-Tuổi Hạc-