Retirees in These 12 States Risk Losing Some of Their Social Security Checks
Nearly 60 million Americans rely on Social Security retirement benefits, making it a hugely important part of the country's retirement system. On a federal level, Social Security benefits are taxable once your total combined income passes a fairly modest point, and most states exempt Social Security from their state income taxes.
Most, but not all. Retirees in 12 states currently risk losing some of their Social Security checks to state income taxes. Those states are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
The good news is that even among those states, they often have rules that reduce their residents' tax burden on Social Security income vs. the standard income tax rates. The even better news is that two of those 12 states will soon drop their taxes on Social Security income altogether. Read on to find out which ones those are and the basics on how these states that do tax Social Security try to lighten the burden a bit.
Source Fool.com
