Special Report

10 Tips to Get the Most Out of Your Social Security Income

Planning your retirement is an exciting yet daunting task. Despite a lifetime of work, however, many are financially unprepared for retirement: 49% of those ages 55 to 66 had no personal retirement savings in 2017, according to the U.S. Census Bureau’s Survey of Income and Program Participation. Those who are unprepared will have to rely on Social Security benefits in retirement, and they need to know what the tax implications are.

24/7 Wall St. created this list of information about the taxability of Social Security income and other financial advice related to Social Security based on the report Is Social Security Income Taxable? produced by financial technology company SmartAsset.

State and local taxes can have a profound impact on retirees. Income taxes on Social Security retirement benefits and retirement account withdrawals vary widely from state to state. There also are considerable differences between the property and sales tax rates across the country. (Here are states with the highest and lowest property taxes.)

Taxes that retirees pay can vary greatly depending on where they live. Wyoming has no state income tax and low sales and property taxes, so retirees in Wyoming can expect to have a  small tax bill. In contrast, Nebraska taxes all retirement income and has high property tax rates. The total tax bill for a retiree in such a state could be thousands of dollars higher. (Here are where people pay the most of their income in state taxes.)

Click here to see if your social security income is taxable.

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