Posted by According to the latest data from the Tax Foundation, most states in the U.S. do not collect taxes on the basic social security pension (also known as Social Security Benefit), but at present,Thirteen states still levy personal income taxes on this retirement pension.
This rule is usually that the government has drawn a minimum standard line. If the adjusted income amount is below this standard line, then the money can be deducted from personal income;If this minimum amount is exceeded, then this basic social maintenance old pension will have to be paid back gradually.
T.L.T.(TheLifeTank.com,American Life Insurance Guide) Once published an article in the 2019 personal finance column-"The harder you work, the more you lose in your pension?How to avoid falling into the social security pension "trap"? (click to read)"To introduce this issue.
But in addition to the federal government's taxation, state-level governments also have their own taxation policies.
If we live in the following 13 states in the United States, or choose to retire in these 13 states, then even our most basic government retirement pension (also known as: Social Security Pension, English name Social Security Benefit) will also face The issue of taxation and shrinkage at the state level.
List of 13 U.S. states that tax social security pensions
1. Utah
The incremental tax limit, the standard line of exemption is that the couple's income is less than $5, or the personal income is less than $3.
2. West Virginia
2021 standard line: exempt 65% of social security retirement pension income; completely exempted in 2022.
3. Montana
Need to confirm the situation in 2021 with the state government
4. Vermont/Vermont
The standard-line couple's income is less than $4.4, or the personal income is less than $3.4, which will increase after being higher than the standard line.
5. Rhode Island
Qualified retirees whose married income AGI is less than $10.24 or their personal income is less than $8.19 can apply for personal income adjustment.
6. Nebraska
Standard line: Couples' income AGI is less than $5.8, or personal income is less than $4.3.
7. New Mexico
All included in taxable income, and then apply for relief.
8. North Dakota
Standard line: Couples' income AGI is less than $10, or personal income is less than $5.
9. Colorado
Persons over 55 years of age are allowed to apply for deduction of social security pension from their personal income.
10. Kansas
Regardless of whether it is an individual or a family, as long as the income AGI is less than 7 US dollars, it can be exempted.
11. Missouri/Missouri
Couples with an AGI income of less than $10, or a personal income of less than $8.5, and over 62 years old, can be 100% exempted.
12. Minnesota
The standard-line couple's income is less than $10.3, or the personal income is less than $8.1, which will increase after being higher than the standard line.
13. Connecticut
Couples with an AGI income of less than $10 or a personal income of less than $7.5 are exempt. (End of full text)
(>>>Related reading:401(k) and IRAs are also tax-exempt for pension withdrawals?Inventory of 9 U.S. states that do not have "retirement income" taxes )
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