SOME Americans may get less money from their Social Security checks in 9 US states this month due to a tax hike.
These chosen states are slated to increase the amount of tax taken from people’s Social Security benefits.
A shocked senior couple takes a look at their finances Getty
Individuals living in these nine states may have to pay higher taxes from September onward – leading to smaller checks.
The nine affected states are – Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
The other 41 US states do not charge income tax on residents’ Social Security benefits, according to Investopedia .
Social Security benefits are based on a person or couple’s overall income and the impact of this tax hike will depend on the state they live in.
It is likely that the larger an American’s Social Security check, the higher their taxes will be.
However, some states are also expanding their Social Security tax exemptions for qualifying seniors – Colorado included, per AARP .
Roughly 68 million Americans receive social security payments every month.
That comes to a huge cost of $1.5 trillion a year.
Around 40% of Social Security recipients must pay federal or state tax on their benefits.
This is usually because they have another substantial form of income besides their benefits.
The new tax will reportedly be deducted when an individual files a federal tax return.
Social Security Payments The average social security retirement check is $1,918 a month, according to the Social Security Administration (SSA).
But retirement payments can be as high as $4,873.
And nearly nine out of ten people aged 65 and older receive Social Security benefits.
These reportedly tend to represent about 30% of their income.
According to the SSA, those who stop work at the official retirement age this year will receive a maximum of $3,822 a month.
It seems that the later you retire, the more money you receive.
“If you retire at age 70 in 2024, your maximum benefit would be $4,873,” the SSA said on its website.
What states will be affected by the tax hike? Nine states across the US will increase the amount of tax taken from people's social security checks from this month.
Here are the nine states:
Colorado Connecticut Minnesota Montana New Mexico Rhode Island Utah Vermont West Virginia
“However, if you retire at age 62 in 2024, your maximum benefit would be $2,710.”
Payments are usually staggered throughout the month due to the large number of Americans who receive checks.
Meanwhile, one woman received an email claiming her Social Security number was at risk of being revoked , but it was a scam.
The email claimed that Joyce House’s number was involved in drug trafficking and other criminal activities.
But luckily, House noticed something was off and concluded that she had been targeted by scammers.
She shared her story to warn others of a similar fate.
“I’m hoping if [the scammers] reached out to anybody else that they’ll not fall for this,” House said.
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