These 2 States Just Stopped Taxing Social Security in 2024
People across the U.S. rely on Social Security to help them make ends meet in retirement. It's therefore somewhat shocking for many to learn that tax authorities often end up including a portion of Social Security benefits in taxable income, adding to prospective tax bills.
It doesn't even take that much income to trigger taxes on Social Security at the federal level. Add up your non-Social Security income and half of your Social Security benefits, and those with combined income above $25,000 for singles or $32,000 for joint filers could pay tax on up to half of their Social Security. Above $34,000 for singles or $44,000 for joint filers, the portion that's subject to tax jumps to as much as 85%.
As if that weren't bad enough news, a handful of states also impose state income taxes on Social Security benefits in some circumstances. The good news, though, is that now that 2024 has begun, residents in a pair of states that were among those who got taxed on their Social Security can breathe a sigh of relief. Here's why Nebraska and Missouri residents no longer have to worry about losing some of their monthly Social Security checks to taxes.
Source Fool.com
