Although experts recommend not relying solely on the Social Security check in any of the United States, a large number of retirees do so. Each person is totally individual and can organize his or her life as he or she prefers, but if we are talking about Social Security checks, it is best to have everything under control.
If we live in certain states, we will lose part of our Social Security check. This is bad news for a large part of retirees, so you have to be aware of this kind of conditions. In the event that we live in one of these places, we can think about moving to a different place so as not to lose part of our retirement.
However, it is well true that not all retirees can afford a move, so you can always look for some extra sources of income. In this we can talk about being working or selling things we don’t need anymore, for example. Still, pay attention to the states where we will have to pay part of our Social Security check and, therefore, we will have less money every month.
In which states do we have to pay mandatory Social Security taxes?
The money we have to pay out of our Social Security check in certain states is taxes. These taxes are unavoidable, so it is best to pay them to avoid additional penalties and surcharges.
If you are thinking of moving to a new state, pay attention, because in these states you will have to pay part of your retirement check in state taxes:
- New Mexico
- Rhode Island
- West Virginia
As you can see, the total number of states that collect taxes is 12. If you live in one of these states, you need to take state taxes into account when you start cashing a Social Security check.
How much tax do I have to pay on my pension?
The final amount of state taxes on our Social Security pension will depend on our monthly income. Each retiree has a different income and, therefore, each will pay different taxes.
Fortunately, the IRS itself offers us the opportunity to use its tax calculator. Using this tool we will be able to make an estimate of the amount of taxes we will have to pay when we file our taxes.
And remember, if your income is under $73,000, you can apply for FreeFile. With this program you will get help filing your taxes. You still have time to file, so don’t worry about doing it quickly. Just get it done as soon as possible to avoid problems with the IRS.
When will I receive my benefit?
Each month, the Social Security Administration sends out retirement benefit payments on three different days. On each of these days, different groups of retirees collect their monthly checks. Depending on your date of birth, you may collect earlier or later.
Pensioners born between the 1st and 10th of any month will collect their check on the second Wednesday of the month. The third Wednesday of each month is the collection day for pensioners with birthdays between the 11th and 20th of any month. The fourth and last Wednesday of the month is the day Social Security sends checks to pensioners born between the 21st and 31st of any month.
Whether it is to receive a tax refund or to cash any Social Security check, the best option is Direct Deposit. This is because it is the fastest method of collection that exists for these cases. The money is deposited into this account immediately, so we do not have to wait to receive it.
On the other hand, there is also the Supplemental Security Income. This other benefit is only for a smaller group of low-income retirees or people with disabilities. SSI checks are always sent out by the Social Security Administration on the 1st of each month, with minor exceptions.