If you are planning to retire think very carefully before retiring in one of these 12 states.
Planning Your Retirement
when planning your retirement there are a lot of things you need to consider including the cost of living, proximity to family, and the weather. Moreover, the biggest thing you have to consider is how state law could affect your Social Security benefits.
There some states are tax-friendly however if you live in one of the 12 states listed below, there’s a chance you could lose some of your benefits.
12 States That Might Risk Your Social Security Checks
These are the following 12 states tax the Social Security benefits of at least some of their seniors:
- New Mexico
- Rhode Island
- West Virginia
But relax! if you live in one of these places not all of their residents owe Social Security benefit taxes. Every state regulates its own rules. This is usually based on your income or your annual Social Security benefit.
The Department of Taxation is where you can check if you are worried about owing these taxes to learn its rules. If the state changes the way it taxes Social Security benefits or decides to eliminate this tax.
The federal government still owes federal Social Security benefit taxes even if you don’t live in those states above. It all depends on your monetary income, which is defined as your adjusted gross income (AGI), plus any nontaxable interest you have, plus half your annual Social Security benefit.