Social Security payments through any of the United States reach all beneficiaries equally each month. That is, a retiree can get his or her check earlier or later regardless of where he or she lives. What matters in order to get the payment on a specific day is the group of retirees to which he/she belongs.
In this sense, the place of residence also does not matter in determining the amount we get. However, the place of residence does matter when it comes to tax payments. Some states collect more taxes than others, and that is what will happen starting in September, which will cause many Americans to lose part of their monthly benefit.
Although it is true that this will not happen in all states, it is also true that in the future this situation could spread to other different places. But what is certain is that if we are living in some of the states that will be raising these taxes we will have less money available from our Social Security check starting next September.
Which states are raising Social Security taxes?
There are 9 states that will be changing the attorney laws regarding Social Security checks starting next September. If you live in these states you may have to pay a little more when it comes time to send in your Tax Return next year 2025. However, everything will also depend on your income level and whether or not you have a very large benefit.
The states that will be collecting more Social Security taxes starting in September are:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
The amount of extra taxes we will have to pay in these states will depend directly on the income we have. So having a high Social Security benefit means we will pay more taxes. Average checks of around $1,800 will not have to pay extra taxes in most cases, but it could be depending on whether you have other outside retirement income or not.
How to avoid the increase in Social Security taxes?
The only way to avoid this is to live in a state other than those listed above. If you live in one of these States and you have a benefit that reaches the minimum amount to pay taxes, you will have to pay it. Therefore, do not forget that at the time of making the Tax Return you will have to include all your income.
In order to have less financial and economic problems it is always advisable to check our income and create a budget based on it. In the event that we lose part of our Social Security money due to payment of taxes, then we should cut expenses elsewhere.
