The 4 Least Tax-Friendly States for Social Security Recipients

When it comes to the most important social programs for retirees in this country, Social Security is probably at or near the top of the list. Each and every month, more than 42 million retired workers receive a stipend from the Social Security Administration, with 62% relying on this payout to account for at least half of their income. Given the poor saving habits of working Americans, leaning on Social Security during our golden years has become all too common.

Yet in spite of the critical role Social Security plays during retirement, most folks don't have a very good understanding of the ins and outs of Social Security. How do we know? A 10-question true-false quiz of more than 1,500 people conducted by MassMutual Financial Group two years ago showed that just 28% passed (i.e., got seven or more questions right) and understood basic Social Security concepts. Just one person aced the quiz.

There's a lot that working Americans, and to some extent retirees, don't know about Social Security -- and topping that list just might be its taxable status.

Source: Fool.com