Did you know that certain states tax social security benefits?
While there are known federal taxes on some social security retirement benefits and other types of benefits (including the disability ones), there are also certain states that add up to these taxes by having their own types of taxes at the state level. There are some states that have started to phase out state-level taxes on social security benefits, but that is not the case for all of them. And while some of them have caps or thresholds on the amount of income you can have before it gets taxed, not all states follow these rules.
It can be pretty hard to remember which states tax benefits and which don’t, not to mention sometimes it can be pretty confusing to know the situations in which they tax them if you know the state. To help you get over that confusion or just to satisfy your curiosity, we have gathered some of the states that still offer tax benefits at a state level and how they do it in an easy-to-understand way!
Let us know if you live in any of these states or if you plan to, maybe, move to one of them in the comments down below!