2023 Is the Last Year These 2 States Will Tax Social Security
Social Security provides vital benefits for tens of millions of Americans. But many people are surprised to find out that under certain circumstances, benefits are added to your taxable income for IRS purposes and therefore are subject to federal income tax.
This can happen even for those with relatively low incomes, since all it takes for a portion of Social Security to be taxed is to have combined income -- one-half of your Social Security plus your income from other sources -- of more than $25,000 for single filers or $32,000 for married couples filing jointly.
Adding insult to injury, several states impose Social Security income taxes of their own on top of what the IRS takes. However, two states that until now have been among this group are no longer going to tax benefits come 2024. Below, you'll get the details on what Missouri and Nebraska did to eliminate Social Security taxation.
Source Fool.com
