Social Security is an important staple for many older Americans making up a significant portion of their income. According to the Social Security Administration (SSA), two in five married couples report needing the benefits from Social Security to help them with 90% of their income during retirement. This is a considerable amount of money that a large number of people depend on to help them through their golden years. For this reason, it is so important that if you are someone who will be relying heavily on Social Security benefits you must consider how taxes affect your monthly income. You could be looking at taxes on these critical benefits at both the state and federal levels. Because there is a variance on the amount of taxes that each state takes from Social Security, you might want to think about checking out some of the states that allow you to keep the maximum amount of your benefits in your pocket.
37 States That do Not Tax Social Security Benefits
These states will not tax your Social Security benefits:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Nevada
- New Hampshire
- New Jersey
- New York
- North Carolina
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Virginia
- Washington
- Wisconsin
- Wyoming
An interesting and very helpful note is that there are seven of these states above that do not impose any state income taxes. These states include:
- Alaska
- Florida
- Nevada
- South Dakota
- Texas
- Washington
- Wyoming
Retirement Income
It is worthwhile when planning retirement to take taxes into account, which may dictate where in the country you decide to live. There are many considerations to look into as you plan for your current financial situation or for your future. Financial stability at any point in one’s life is highly important. According to the National Council on Aging, there are more than 25 million elderly Americans over the age of 60 who are not stable in their finances. These individuals are living at or below 250% of the federal poverty level. No business or individual wants to struggle with money and the inability to pay down one’s debt and keep up with monthly bills is a struggle that many Americans face.
Finding a Bankruptcy Lawyer in Indiana
The stress and pressure related to financial strain are overwhelming, to say the least. The good news is that you are not alone with these challenges, you have options. If you are facing economic instability and thinking about bankruptcy, contact an experienced Indiana bankruptcy attorney to examine your situation and provide you with a course of action that will be specific to your circumstances.
Christopher L. Arrington, P.C. is a resourceful and efficient Danville bankruptcy lawyer. Should bankruptcy be the right path for you, I will guide you through the entire process and answer all of your questions. You can get a handle on your financial well-being, and I am interested in helping you do so. Call my Danville bankruptcy law firm at 317-745-4494 today so we can discuss your finances together during a free consultation.