July 14, 201412 yr Active Members Social Security: 6 States That Heavily Tax Benefits By John Maxfield , July 12, 2014 Source: The Tax Foundation As a retiree, there are few things as frustrating as the fact that your Social Security benefits are potentially subject to federal income taxes. Weren't previously paid taxes what financed them in the first place? To make matters worse, a handful of states also require retirees to remit a portion of their monthly benefits to the public coffers. But while some states are more lenient in this regard than others, there are six that stand out from the pack on the opposite end of the spectrum. These states -- Minnesota, Nebraska, North Dakota, Rhode Island, Vermont, and West Virginia -- apply the same standard for taxation as that used at the federal level. As a result, many retirees in these states face the dismal prospect of having at least some of their benefits reabsorbed into the system. Expanding on this in the following video, Motley Fool contributor John Maxfield breaks down the 50 states according to how they treat Social Security payments for purposes of income taxes. Social Security plays a key role in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today. See the oriuginal article with accompanying video at: http://www.fool.com/retirement/general/2014/07/12/social-security-6-states-that-heavily-tax-benefits.aspx
July 14, 201412 yr Author Active Members Fortunately, I'm not inclined to live in any of these states.
July 14, 201412 yr Fortunately, I'm not inclined to live in any of these states. I would love to live in Vermont, mainly because of its "quaintness"
July 16, 201412 yr Author Active Members I would love to live in Vermont, mainly because of its "quaintness" Vermont is quaint, also a quaint mix of people. It is full of red necks and New Yorkers-in-exile. That is what my son, who spent a few years there attending school, led me to believe. My observations on visits did not conflict with this. Beautiful state with high taxes.
July 16, 201412 yr Agreed. Go not far beyond the penumbra cast by Bennington and you will discover that the designation 'Yankee' by no means conflicts with 'redneck.'
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