Retiring on Social Security? These 10 States Could be Taxing
The closer you get to retirement -- and once you're there -- what gets taxed from the retirement income you'll be depending on becomes ever more important, and where you live has a lot to do with it.
So does what's meant by "retirement income" itself. Everyone's mix is different, including IRA and 401(k) distributions, interest and dividends from savings and investments, and private and public pensions, including the biggest public pension of them all.
Indeed, for many of us -- including me -- retirement income begins with Social Security, and only 10 states do tax those benefits: Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. The rules vary widely. For instance, Utah closely follows the IRS rules around income levels regardless of age, while in Colorado, Social Security is not taxed at all if you're age 65 or older.
Source Fool.com
