Social Security benefits are an important source of income for many people in the US, especially those who need them to pay for basic things.
However, when laws and budgets change, the way these benefits are taxed can have a big impact on how much each beneficiary gets in the end.
Some states have decided to tax Social Security checks starting in 2025. This has made people worried about how it will affect the lives of many seniors and disabled people.
It is important for beneficiaries to know about the rules about attorneys in their own states, since this can have a direct effect on their ability to pay their daily bills.
People should be careful and do a full check of their tax situation to avoid unpleasant financial surprises. Let us look at the states that are putting in place Social Security taxes and how important it is to know the rules in each one.
States that will collect Social Security taxes in 2025
In 2025, these states will be the ones that tax Social Security benefits:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
It is important for people in these states to remember that even though some states do not charge Social Security taxes, they still have to pay their federal taxes. Because each state has its own rules, beneficiaries should be aware of the rules that apply to their state.
Citizens should also check information directly with their state’s tax authorities to make sure they understand how taxes affect their benefits and if they need to make any changes to how they plan their finances.
The rules are complicated, and knowing them can help you avoid unpleasant surprises down the road. Finally, if you live in one of the states listed above, make sure you know how this might affect your Social Security check in 2025.
Steps to increase Social Security
Getting more money from Social Security can be a big part of making sure you have enough money in retirement. Here are some important steps that will help you get the biggest check possible:
- Delay retirement: If you decide to wait longer to retire, your Social Security check will increase significantly. For every year you delay retirement after reaching full retirement age, your benefit will increase.
- Increase your years of work: Working for more years can help increase your average earnings, which can result in a larger check. Social Security considers your best 35 years of earnings, so if you’ve had years of low wages, each additional year can replace a lower income.
- Increase your salary: If you have the opportunity to negotiate a higher salary or improve your job skills to get a raise, this can positively impact the amount you will get from Social Security.
You should think about which of these steps might work best for your specific situation because each beneficiary is different. Making plans ahead of time and learning about your choices can make a big difference in your long-term financial health.
But when it comes to paying taxes, there are a lot of things to think about. Because of this, if we have any questions, we should talk to a professional who can help us understand everything about our state taxes and the Social Security check we get.