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The 13 states that tax Social Security are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia.
I saw that list when I did the Google. It's not completely accurate. For example, Rhode Island has a means test on taxing Social Security income. They don't tax it at all if your AGI is below $80K/single, $100K joint. Rhode Island also excludes the first $15K of your other income for people at FRA if you're below those same income thresholds. They're trying to slow down retirees fleeing the state. Like a lot of other places, they still need to address property taxes. I think states should adopt a California/Florida-style yearly cap on increases for people at full retirement age. The maximum increase if you don't improve the property should be held to your Social Security COLA adjustment percentage.
They make it so complicated. Michigan has 3 different sets of rules depending on when you were born. The last "tier"
Taxpayers born after 1952
If you were born after 1952, your social security income is exempt and so is income from railroad and military pensions. You don’t get a senior citizen subtraction for interest, dividends and capital gains. Before age 67, you are not eligible for any subtractions from your income from private or public pensions. After age 67, you can choose to continue to have social security and railroad or military income exempt or you can choose to subtract $20,000 ($40,000 if married and filing jointly) from the amount you’ll pay taxes on. If you choose to keep your social security and railroad or military income exempt, then you can claim a personal exemption.
I don't even understand that. Seems like if you choose soc security/mil pension exempt, then you "can't" claim a personal exemption?
Either way I will have no idea of how to figure that out.
I want to move to the state/country with the simplest rules!
They make it so complicated. Michigan has 3 different sets of rules depending on when you were born. The last "tier"
Taxpayers born after 1952
If you were born after 1952, your social security income is exempt and so is income from railroad and military pensions. You don’t get a senior citizen subtraction for interest, dividends and capital gains. Before age 67, you are not eligible for any subtractions from your income from private or public pensions. After age 67, you can choose to continue to have social security and railroad or military income exempt or you can choose to subtract $20,000 ($40,000 if married and filing jointly) from the amount you’ll pay taxes on. If you choose to keep your social security and railroad or military income exempt, then you can claim a personal exemption.
I don't even understand that. Seems like if you choose soc security/mil pension exempt, then you "can't" claim a personal exemption?
Either way I will have no idea of how to figure that out.
I want to move to the state/country with the simplest rules!
And, amazingly, some people think the solution to our problem is yet more rules.
Thank you all. I should have included private pension in my original post, since PA doesn't tax SS or pensions. I need to get at the pension soon after I move so wondering how I can do that without getting taxed.
I was happy to see that when I retired, all my income sources asked me if I want taxes take out. In the working world you don't have a choice.
None of my income is taxed, but at the end of the year I need to pay the IRS, but as the year progresses I concentrate on tax deductions and by tax time I really don't owe that much.
You kinda do. You can adjust how much is taken out by your exemptions.
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