United States Social Security benefits are the same regardless of state. This means that no matter what state you live in, you will receive the same benefits based on years of service and earnings. On the other hand, a COLA affects everyone as much as does inflation. But what is not equal is the amount of Social Security taxes paid in different states. This is the maximum pension difference.
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. Keep in mind, however, that for Americans, taxes are mandatory, 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, you will never forget 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, payment of Social Security taxes is mandatory. With this information, you can find out if living in one of these states is okay or not and if your Social Security benefits are lower than in other states.
The good thing is that there are many different places to live in the United States, 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 is as follows:
- New Mexico
- Rhode Island
- West Virginia
In total, there are 12 states where you must 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 be in trouble with Social Security and the law.
How much tax do I have to pay on the 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. The total amount of tax depends on what your limit is and whether you are also collecting any other type of income.
If you have any doubts, contact a professional attorney. 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 make the country better in every way.
And remember, there are ways to increase your monthly Social Security payment to increase your purchasing power. The difference can be as high 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, that way you will save a lot of money every month and be able to have higher purchasing power every year.