Updates On Social Security And What To Know For 2022

Your Social Security payments for retirement, disability, family, and survivor do not vary regardless of where you reside in the United States or if you relocate from one state to another. Although states handle many aspects of the federal program, such as SNAP and Medicaid, eligibility standards, payments, and protocols for Social Security are identical nationally. They do not vary by state, unlike those two programs.

While the program itself does not differ from one state to the next, how the program is managed varies.

Most States With Tax Benefits Are Expecting Change

12 states continue to tax Social Security benefits and the federal tax imposed on recipients whose incomes reach a certain threshold. Here’s the rundown:

  1. Colorado 
  2. Connecticut
  3. Kansas
  4. Minnesota
  5. Missouri
  6. Montana
  7. Nebraska
  8. New Mexico
  9. Rhode Island
  10. Vermont
  11. Utah
  12. West Virginia

While there are no significant changes in store for residents of these states in May, the tax code is constantly changing, so it’s vital to keep informed about how any recent or upcoming changes may affect you.

For example, Colorado recently modified its regulations to allow retirees to deduct more of their federally taxable Social Security income. The maximum deduction used to be $24,000, but it will be unlimited starting in 2022, thus eliminating Social Security taxes for everyone over 65.

Utah increased its Social Security tax credit for low-income people in February.

As part of a substantial package of tax cuts, the Minnesota Senate voted to repeal the state’s Social Security tax in April. While the bill’s future is unknown, Social Security recipients in Minnesota will want to keep an eye on the situation.

The situation is even better in New Mexico. In March, the governor of that state signed a measure repealing the state’s Social Security tax. In 2022, West Virginia will finish the final step of its phased elimination of the state’s Social Security tax.

These are just a few instances; significant changes are in the plans for several more states that tax Social Security income, regardless of whether they are implemented in May.

State Supplemental Security Income (SSI) Benefits Vary

Every year, the maximum Supplemental Security Income (SSI) benefit fluctuates. Individuals will receive $841, and couples will receive $1,261 in 2022. However, this is simply a federal benefit. The states – at least the majority of them – supplement federal SSI payments with their contributions.

If you live in Mississippi, Arizona, West Virginia, or North Dakota, your best options are $841 (individuals) or $1,261 (couples). Residents of the other 46 states and the District of Columbia who qualify for SSI receive additional benefits. Individuals living alone in New York, for example, can earn $928, while couples can receive $1,365.

Contact Information:
Email: [email protected]
Phone: 2178542386

Bio:
Bill and his associates of Faith Financial Advisors have over 30 years’ experience in the financial services industry.
He has been a Federal Employee (FERS) independent advocate and an affiliate of PSRE, Public Sector Retirement Educators, a Federal Contractor and Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.
Bill will help you understand the FERS Benefits and TSP withdrawal options in detail while also helping to guide you in your Social Security choices.
Our primary goal is to guide you into your ment with no regrets; safe, predictable, stable and for life using forward thinking ideas and concepts.

Bullet points:
> Financial Services consultant since 1984
> FERS independent advocate and an affiliate of Public Sector Retirement Educators (PSRE), a Federal Contractor and Registered Vendors to the
Federal Government
> Affiliate of TSP Withdrawal Consultants
> His goal is to guide individuals into retirement with safe, and predictable choices for stability using forward thinking ideas and concepts.

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