8. Social Security Might Not Be Taxed By Your State
Do you live in one of the following states: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia?
Here, a portion of your Social Security benefits will be subject to income taxes, meaning that before you retire you should take this into consideration in order to supplement the cuts with more savings.
If not, however, the state won’t touch your benefits. So if you live in any of the other 37 states or if you plan to relocate there during retirement, you don’t have to worry about taxes.
