11 States That Will Tax Social Security Benefits This Year

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Retirees, the taxation burden is back! While the cost-of-living adjustment of 2023 was a breather, the increase in income will attract tax in some states IF the new income bracket exceeds certain amounts. One can hope that the number will drop next year, until then, here are 11 states that will tax social security benefits this year. Please talk to your tax consultant for exact numbers.

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Connecticut

If the Adjusted Gross Income (AGI) remains below $100,000 for married couples filing taxes jointly and below $75,000 for filing taxes as a single person, there will be no taxes on benefits. A tax of 25% on benefits will be levied if the AGI exceeds the above thresholds.

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Colorado

If you are under the age of 65 and the AGI benefits are $24,000, there are no taxes for the first $20,000. If you are above the age of 65 and the AGI benefits are above $24,000, the full amount of benefits is deductible from tax returns filed as a Colorado resident.

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Kansas

Irrespective of your filing status, single or joint, you do not have to pay any taxes if the AGI is below $75,000. Anything above $75,000 will be taxed based on your age, income, and eligibility.

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Minnesota

If the AGI remains below $105,380 for married couples filing taxes jointly and below $82,190 for filing taxes as a single person, there will be no taxes on benefits, either full or partial. A tax on benefits will be levied if the AGI exceeds the above thresholds.

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Missouri

If the AGI remains below $100,000 for married couples filing taxes jointly and below $85,000 for filing taxes as a single person, there will be no taxes on benefits. If the value of AGI exceeds the amount of the social security benefit, some taxes will be applicable.

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Montana

Social security is taxable for many retired people. If the total annual income remains below $32,000 for married couples filing taxes jointly and below $25,000 for filing taxes as a single person, all social security income becomes deductible. Starting this year, Montana residents have to pay social security taxes at par with the federal threshold.

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Nebraska

If the AGI remains below $59,100 for married couples filing taxes jointly and below $44,460 for filing taxes as a single person, there will be no taxes on benefits. Anything above these thresholds will be taxable per eligibility. The state is attempting to phase out the taxes on social security benefits by 2025.

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New Mexico

If the income remains below $150,000 for married couples filing taxes jointly, below $75,000 for filing taxes as a single person, and below $100,000 as a single taxpayer, there will be no taxes on benefits. Only the top tier income earners will pay taxes on their social benefits.

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Rhode Island

If the income remains below $126,250 for married couples filing taxes jointly and below $101,000 for filing taxes as a single person, or if you fall above the threshold of the retirement age mandated by Social Security, there will be no taxes on benefits.

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Vermont

If the AGI remains below $65,000 for married couples filing taxes jointly and below $50,000 for filing taxes as a single person, no social security benefits will be taxed. Full exemption is available at the $50,000 threshold for single taxpayers and at $65,000 for joint tax payers.

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West Virginia

If the AGI remains below $100,000 for married couples filing taxes jointly and below $50,000 for filing taxes as a single person, none of the social security benefits will be taxed. Anything above these thresholds will be taxed based on your age, income, and eligibility.