Paying taxes is something that all United States citizens must do. For that reason, it is important to know each one of the secrets that can save us part of our Social Security check in taxes. While it is true that payment of taxes is mandatory, it is not the same amount in all United States.
Living in one state or another will cause us to pay more or less taxes in the year 2023. We are talking about the current and current year, not the past. As for the tax return we have to do now, the Social Security money that is taken into account is that of the year 2022.
So for your 2024 tax return, you can move to one of these states. In 2023 you will have less money deducted from your Social Security in these States, so this is good news for being able to live with a little more money every month.
States that will have lower Social Security taxes in 2023
In these states you will pay less in Social Security taxes in 2023, according to MoneyTalksNews:
- Alabama. In this state, taxpayers age 65 and older will receive a tax exclusion on the first $6,000. Therefore, taxpayers that age will pay no taxes on their first $6,000, very good news.
- Delaware. For seniors over 60 the tax exclusion is $12,500. So in this place we can save a lot of money from our Social Security.
- Iowa. Residents 55 and older, plus disabled users and widows, will be exempt from several taxes.
- Rhode Island. Military pensions are fully tax exempt starting in 2023. On the other hand, Social Security retirees who have reached Full Retirement Age also get a tax break.
- Nebraska. Some eligible taxpayers will be able to receive a 60% Social Security tax break starting this year.
- Virginia. Veterans age 55 and older will also get discounts starting in 2023 on retirement taxes.
So, living in one of these states can make a big change in our monthly Social Security check. Still, remember that you can ask for help if you have questions about the taxes you will have to pay. It’s also good to keep in mind that we still have until April 18 to file our tax return, even though it pertains to 2022 income.