Social Security benefits in the United States are the same regardless of the State. This means that no matter what state you live in, you will receive the same benefit based on your years of service and wages. On another note, the COLA also affects everyone equally, just like inflation. But what is not equal is the amount of Social Security taxes paid in different states. Therein lies the maximum difference in retirement benefits.
So, if you live in a state that has Social Security taxes, your monthly check will be slightly lower. This happens after tax, of course. But it’s important to remember that taxes are mandatory for Americans so take care of this aspect if you don’t want to get into any trouble.
To avoid problems and to pay less Social Security taxes, avoid these states. If you live in them, you pay taxes never forget about them, and you will have no problems. Although it is advisable to look for a state where state taxes can be avoided.
Where is it mandatory to pay state Social Security taxes?
In some states, paying Social Security taxes is compulsory. With this information, you will be able to know if it’s okay to live in one of these states or not. The good thing is that the United States has so many different places to live, so you may have time to move to avoid paying these taxes.
The list of states where you will have to pay Social Security taxes are as follows:
In total there are 12 states where you are required to pay taxes if you live there. Therefore, the rest of the places do not require taxes. If you want to live in some of these places you must abide by the consequences. Otherwise, you will have problems with your Social Security and with the law.
How much tax do I have to pay on my benefit check?
It’s important to say that all other states are exempt from paying state taxes, but federal taxes are mandatory. So be careful when declaring all your benefits as you have to pay taxes independently. This entire amount of tax depends on what your limit is and whether you also collect any other type of income.
If you have any doubts, see a professional lawyer. This is the best way to avoid legal problems and pay all mandatory taxes. Don’t miss the opportunity to do your homework as an American Citizen to help improve the country in all respects.
And remember, there are ways to increase your monthly Social Security payment to give you more purchasing power. The difference can be as much as $16,728, so choose wisely when you want to retire.
Therefore, it is much better to move to one of the states where they do not charge state taxes, this way you will save a lot of money every month and you will be able to have higher purchasing power every year.
When is Social Security paid?
If your birthday is between the first and the 10th, the payment will be deposited on the second Wednesday of each month.
If your birthday is on the 11th-20th, it will be deposited on the third Wednesday of each month.
Lastly, if your birthday is on the 21st-31st, it will be deposited on the fourth Wednesday of each month.
The Social Security Administration always makes these payments on time. For this reason, it is very common to receive them in these days or three days later at the most. If you have Direct Deposit activated, you will have immediate access to your pension money.
Contact Social Security
If you have any doubts or questions, you can contact Social Security. There are different ways to do so. Here are the three most direct ways.
Go to an office. There are offices all over the United States and you can find the one nearest you. At some of them you will need an appointment, so find out before you go.
By telephone. The telephone is another, sometimes the quick, way to get in touch. The problem is that there are a limited number of calls possible, so the Social Security Administration cannot accept all calls at once. The telephone number is 1 (800) 772-1213.
These two avenues are also very useful, but less so than the online route for contacting the Social Security Administration. So, get your My Social Security account, avoid problems and save time.