Complete Information on Social Security, and State Income Tax

All of us know that information on taxes is always complicated. Some states are not imposing a tax on Social security benefits income, and some do not include Social Security income as a part of their calculation for taxable income. Some states follow the same procedure as the federal government, and some states have exempted Social Security income for different reasons. 

The names of the stated that do not tax income from the Social Security benefits federal taxable income are: Delaware, Arizona, Idaho, Massachusetts, South Carolina, Illinois, New York, Ohio, Oklahoma, Colorado, Georgia, and Virginia.

States that tax income in the same way as taxed by the federal government are Utah and Nebraska. 

States that offer exemption have been discussed in the report given by the Tax Foundation: 

Connecticut offers an exemption for federal adjusted gross income (AGI) taxpayers with income below $75,000 (single tax filers) or $100,000 (joint filing).

Kansas offers an exemption for federal AGI of $75,000 (single and joint tax filer both) 

Minnesota has its graduated system of exemptions in case the provisional income of a person is under $81,180 (single tax filer) or $103,930 (joint filing).

Missouri offers 100% tax income exemption on Social Security benefits provided the taxpayer is 62 years or older and annual income below $85,000 (single tax filer) or $100,000 (joint filing). 

North Dakota offers subtractions when the AGI is below $50,000 (single tax filer) or $100,000 (joint tax filing).

Rhode Island offers a tax exemption for taxpayers who have attained full retirement age and have a federal Annual Gross Income of below $81,900 (single tax filer) or $102,400 (joint filing).

Vermont State has its graduated system to offer an exemption of Social Security income if the income of an individual paying taxes is under $34,000 (single tax filer) or $44,000 (joint filing).

State imposing a tax on Social Security income under a new law in West Virginia that is being phased out will utterly exempt income from state taxes from 2022.

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