Social Security
Most seniors don’t have to worry about taxes on their social security, as 37 states don’t tax benefits. In some cases, this may be due to the fact that Social Security is subtracted from federal adjusted gross income.
Of course, there are exceptions. If you are single and your income is under $25,000 then your benefits could be taxed up to 50%, same for couples with $34,000. Past those two thresholds, you will notice an 85% taxation.
So, really, if you’re unlucky enough to live in a state in which these rules don’t apply it may be time to consider moving, especially if your Social Security represents a big chunk of your retirement income.
