Retirees in these 13 states risk losing some of their social security checks

Chances are, Social Security benefits are very important to you in retirement. Obviously, you will need to know how much income these benefits will provide you with so that you can realistically assess whether you are ready to quit the world of work and support yourself without earning a salary.

Sadly, millions of retirees across America are at risk of losing some of the benefits they expect to receive. Here’s why.

If you live in one of these states, you might lose some of your benefits

Retirees risk losing some of their Social Security checks if they live in one of the 13 states that tax these benefits. The 13 states that Social Security Income Tax include:

• Colorado
• Connecticut
• Kansas
• Minnesota
• Missouri
• Montana
• Nebraska
• New Mexico
• North Dakota
• Rhode Island
• Utah
• Vermont
• West Virginia

Now, if you live in one of these locations, it is not necessarily a given that you will always lose part of your pension benefits to your local government due to its tax rules. This is because many states don’t start imposing a tax on Social Security funds until retirees reach a certain income threshold. More often than not, it’s the upper middle class and the wealthy who find themselves losing some of their retirement money to taxes, while low-income retirees won’t have this worry.

Still, there is a chance that you can see some of your benefits reaping from your condition if you live in any of these 13 places. And if you want to make sure this doesn’t happen, it’s a good idea to visit your state’s revenue department to find out exactly what the rules for taxing benefits are.

If it turns out that you will lose some of your Social Security funds, consider whether a move in retirement might be worth it, especially if your state has other unfavorable tax policies that affect the income you will have. as an elderly person. When you have a fixed income every dollar counts and losing some of your retirement checks to taxes could be a blow that you just can’t afford.

And if you are considering moving, before you decide to move, take a look at how all of your sources of income will be taxed in the states you can move to – not just Social Security. Some states have no income tax, while others have more favorable rules for retirement income. You need to know the total amount of your tax bill.

Ultimately, tax planning is a crucial part of making decisions about where to live in retirement. And it’s best to do this research as soon as you are making decisions about your financial future.

This is especially true if you are likely not to have enough income, especially if the government takes some of it. Responding quickly can save your nest egg, and a decision to lower your state taxes could make all the difference in how well your Social Security checks will provide you with a comfortable future in your later years.