4 states in the US that charge less Social Security taxes

In the United States, Social Security recipients pay federal and state taxes on it, but in some states this has changed and taxpayers can get their money back.

In United States all Social Security (SSA) recipients may be subject to federal income tax on your monthly benefits, based on your total income.

Besides, states like Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia also collect their own taxes about the benefits that apply to the general funds of those states.

States of the USA with changes on SSA taxes

But some of these already have their exceptions, which means relief for your pocket, such as:

• North Dakota stopped taxing Social Security benefits in 2021
• Nebraska will phase out your taxes over the next two years.
• Colorado, New Mexico, Utah, Vermont, and West Virginia have reduced the tax burden for older residents by expanding exemptions and deductions for SSA income.

4 States That Legislate Fewer SSA Taxes

• Kansas residents with an adjusted gross income of $75,000 or less are fully exempt from paying state Social Security taxes.
• This limit applies to all categories of taxpayers.
• Lawmakers are considering two bills this session that would give seniors tax relief by raising the income threshold, beginning with tax year 2023.
• One measure, House Bill 2107, would expand the full exemption to AGIS beneficiaries up to $100,000 and introduce a partial deduction for income up to $120,000.
• House Bill 2109 would maintain the $75,000 ceiling for the full exemption, but would allow beneficiaries with incomes up to $100,000 to subtract part of their benefits from the tax equation.

• This 2023, Governor Tim Walz proposed to reduce taxes on benefits, while several legislators have introduced bills to eliminate them.
• Minnesota residents can deduct some of their Social Security benefits from their state taxes if their income does not exceed $85,970 for an individual taxpayer or $110,020 for a married couple filing jointly.
• Walz proposes increasing the income cuts to $93,600 (single) and $120,000 (couple).
• His plan would also increase the maximum amount of benefits Minnesotans can deduct from state taxes from $4,260 to $7,800 for an individual and from $5,450 to $10,000 for a couple.

• Missouri residents can deduct 100% of Social Security income on their state tax returns if they are age 62 or older and have an Time.news of less than $85,000 for a single person and $100,000 for a couple filing jointly.
• A state rule called “Social Security subtraction” offers a partial deduction to those who must pay taxes on their benefits.
• In 2022, individual taxpayers can exclude up to $4,260 of their federally taxable benefits from their Minnesota income.
• The maximum subtraction for married couples is $5,450.
• This subtraction is phased out for those with higher incomes (starting at $82,770 for married couples filing jointly and $64,670 for single filers).
• Lawmakers met in a special session in September 2022 to approve tax cuts backed by Gov. Mike Parson, including lower income tax rates and new tax credits for farmers and ranchers.

• Utah does not tax Social Security benefits for residents with income less than $37,000 filing individually and $62,000 for a couple filing jointly.
• The state offers partial tax credits on a sliding scale for higher income recipients.
• A bill before the state legislature would increase the exemption thresholds to $44,000 and $74,000, respectively.
• Another bill being considered would eliminate income as a factor in determining taxes on benefits. Instead, Utahns receiving Social Security would receive tax credits of up to $30,000 in benefit income for a single person, $50,000 for a couple.

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