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I believe there are about 14 states which tax Social Security benefits.
Rich, 15 states currently tax social security benefits(primarily because these states use federally taxable income as a base for their state income tax, and up to 85% of social security benefits can be federally taxable) - CO, CT, IA, KS, MN, MO, MT, NE, NM, ND, RI, UT, VT, WV & WI.
The wife and I are coming out to Albuquerque at Christmas to do some pre-retirement recon. We are both retiring early, early being her 50 me 52. A little background on us, I was born in Oregon, grew up in Oregon, Washington, Idaho, California and Wyoming. She is German. Have lived in Texas, Kansas and SC.
My Mom lives in Prescott, Az and our kids and grandkids live in Denver. Albuquerque seems the logical and perfect mid point location for us. We have lived in SC for 12 years now, but will move back west when we retire. We will be living off of savings and military retirement for now but have to consider the tax implications of this move.
I am leaning heavily towards the east mountains and would expect that property taxes are probably lower in that area. We spent 3 years in El Paso and loved every minute of it. Traveled NM extensively and can't wait to get back.
One other question, would you say that the lower cost of living overall helps to offset any additional tax issues?
our experience, yes, the lower cost of living did offset the taxes. That wasn't our reason for leaving NM.
Another peeve is when people who have no business making
"investments" in private businesses throw around tax money
without regard for risk.
An example of this is the almost $20 million and the (ObMike)
"gazillion dollars" "in-ves-ted" in Eclipse that has now just
gone bye-bye to China and Russia in part.
How many people do NOT have a job in New Mexico
because the state, instead of just attempting to be a good
place to do business, bribes outside companies to come here.
OnTopic: Since only two or three states actually have a
balanced budget, look for all of them to eventually tax Social
Security. Look for the Federal Government to do the same.
You can whine about how much "you" paid into the system,
but "your" money was gone long ago. When people finally
understand that fact, real Social Security reform can happen.
Claiming that it's fair to have 20-something and 30-something
taxpayers pay a higher rate ( than current retirees did ) to
support those current retirees is just nuts.
It's a ponzi scheme. It's always been a ponzi scheme.
It should all be taxable. If you are poor and that's your only
source of income, it won't matter. If you are not then you'll
pay. I'm 51. When I get to retirement age, I only expect to
be able to afford to eat out a couple of times a month on my
"benefit." It will be a generational war. It didn't have to be.
Another peeve is when people who have no business making
"investments" in private businesses throw around tax money
without regard for risk.
An example of this is the almost $20 million and the (ObMike)
"gazillion dollars" "in-ves-ted" in Eclipse that has now just
gone bye-bye to China and Russia in part.
How many people do NOT have a job in New Mexico
because the state, instead of just attempting to be a good
place to do business, bribes outside companies to come here.
OnTopic: Since only two or three states actually have a
balanced budget, look for all of them to eventually tax Social
Security. Look for the Federal Government to do the same.
You can whine about how much "you" paid into the system,
but "your" money was gone long ago. When people finally
understand that fact, real Social Security reform can happen.
Claiming that it's fair to have 20-something and 30-something
taxpayers pay a higher rate ( than current retirees did ) to
support those current retirees is just nuts.
It's a ponzi scheme. It's always been a ponzi scheme.
It should all be taxable. If you are poor and that's your only
source of income, it won't matter. If you are not then you'll
pay. I'm 51. When I get to retirement age, I only expect to
be able to afford to eat out a couple of times a month on my
"benefit." It will be a generational war. It didn't have to be.
Agree Mort,
Why I always wished that I could take my money and invest as I pleased. It always bothers me that social programs are always devoid of personal responsibility. Granted, some folks can't do for themselves and we have an obligation to help them, but for the rest of us, we have an obligation to look out for ourselves and not expect everyone else to do it for us.
Claiming that it's fair to have 20-something and 30-something
taxpayers pay a higher rate ( than current retirees did ) to
support those current retirees is just nuts.
Don't claim it's fair, but I'm going to take advantage of it while I can...
SS is not going broke as fast as some would have us believe.
I think this is WAY too rosy an outlook (and also 5 years out of date), but it does
address some of the issues..
Don't claim it's fair, but I'm going to take advantage of it while I can...
In order to do anything to reform the system, they'll have
to bribe the current retirees with crumbs and such.
One way is to "make adjustments" to the COLA "for fairness"
( there's that word again ) as the dollar declines and people
mistake that phenomenon for corporations making "windfall"
profits and "raping the consumer."
Ten years from now, you'll be getting a little more than you're
getting now, but it will buy noticably less. They can still claim
that your benefits have kept up with inflation - conveniently
ignoring the fact that 100% of them will be included in your
taxable income - state and Federal.
Back on topic: Worrying about what the state you are planning
on moving to - taxes you - is just nuts. Live where you want
to live and suck it up.
Back on topic: Worrying about what the state you are planning on moving to - taxes you - is just nuts. Live where you want to live and suck it up.
Uhh... whadda ya think it's gonna be like in Kalifornia 3-4 years from now? Think
Kali won't impose taxes that make the 60's UK taxes seem fair? The only reason
most of the population won't bail is that they're so far upside-down on their houses
that they can't afford to move
Or Florr-eedah when, thanks to BP and a couple more hurricanes, the state economy
tanks completely? Think they won't impose an income tax when revenue falls to a
third of what they'd been used to getting??
I think keeping a very close eye on state government tax dodges is going to be
increasingly critical..
Back on topic: Worrying about what the state you are planning
on moving to - taxes you - is just nuts. Live where you want
to live and suck it up.
I think that it is pertinent.
I might want to retire to San Diego for it's perfect climate, beaches and other things, but if I am relying solely on Social Security, I don't see that happening unless I want to live in a tent.
Granted taxes are just one part of the equation but they do matter.
domio has a good point. I think all income taxes should only apply to the 10% while counting all income from all sources. If your retirement or business is paying you a 100 grand during retirement you pay taxes on your Social Security. If not then not. If your are making millions off interest and dividends then SS is irrelevant but you should be in the 50% tax bracket.
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