{"id":24134,"date":"2025-06-29T09:23:20","date_gmt":"2025-06-29T09:23:20","guid":{"rendered":"https:\/\/www.europesays.com\/us\/24134\/"},"modified":"2025-06-29T09:23:20","modified_gmt":"2025-06-29T09:23:20","slug":"social-security-checks-slashed-in-9-states-what-retirees-should-do","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/24134\/","title":{"rendered":"Social Security checks slashed in 9 states: What retirees should do"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" width=\"1080\" height=\"720\" src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/06\/july-2025-social-security-payments-1080x720.webp.webp\" alt=\"Social Security July Payment Dates and Changes Confirmed\" class=\"wp-image-314458 lazyload\"  \/><\/p>\n<p>Retirees in nine U.S. states are seeing reduced <a href=\"https:\/\/www.ssa.gov\/pubs\/EN-05-10024.pdf\" target=\"_blank\" rel=\"noopener\">Social Security benefits<\/a> due to state income taxes. This change could significantly impact monthly budgets and long-term <a href=\"https:\/\/www.fingerlakes1.com\/tag\/social-security\/\" target=\"_blank\" rel=\"noopener\">retirement<\/a> plans.<\/p>\n<p>Where are Social Security benefits taxed?<\/p>\n<p>Although the federal government taxes some Social Security income, these nine states also apply their own state-level taxes:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Colorado:<\/strong> Residents under 65 can deduct up to $20,000 of federally taxable Social Security income. If income exceeds that amount, it is taxed at 4.4%.<\/li>\n<li><strong>Connecticut:<\/strong> Individuals earning under $75,000, or joint filers under $100,000, are exempt. Higher earners may be taxed on up to 25% of their benefits at rates between 4.5% and 6.99%.<\/li>\n<li><strong>Minnesota:<\/strong> If your income is below $84,490 (single) or $108,320 (joint), you\u2019re exempt. For every $4,000 above the limit, 10% more of your benefits is taxed. State rates range from 6.8% to 9.85%.<\/li>\n<li><strong>Montana:<\/strong> Any part of your benefits included in federal income is taxable. Seniors over 65 receive a $5,660 deduction. Tax rates range from 4.7% to 5.9%.<\/li>\n<li><strong>New Mexico:<\/strong> Residents under $100,000 (single) or $150,000 (joint) are exempt. Others pay between 4.9% and 5.9% on federally taxable Social Security.<\/li>\n<li><strong>Rhode Island:<\/strong> Individuals under $104,200 or couples under $130,250 don\u2019t pay state tax. Otherwise, benefits are taxed between 4.75% and 5.99%.<\/li>\n<li><strong>Utah:<\/strong> Social Security income taxed federally is also taxed by Utah. If your income is under $45,000 (single) or $75,000 (joint), you qualify for a credit. The rate is 4.55%.<\/li>\n<li><strong>Vermont:<\/strong> If your income is under $50,000 (single) or $65,000 (joint), your benefits aren\u2019t taxed. Partial exemptions apply slightly above those limits. Rates vary from 3.35% to 8.75%.<\/li>\n<li><strong>West Virginia:<\/strong> Individuals with income under $50,000, or couples under $100,000, are exempt. Others are taxed on 35% of their benefits. Rates range from 4.44% to 4.82%. Notably, West Virginia will eliminate this tax in 2026.<\/li>\n<\/ul>\n<p>Why it matters<\/p>\n<p>Social Security remains the main source of income for 60% of retirees, according to Gallup. Because of this, reductions can disrupt financial stability. Planning for retirement becomes even more essential when living in a state that taxes Social Security.<\/p>\n<p>To avoid surprises, retirees should review state tax rules carefully. Additionally, speaking with a tax advisor may help clarify how these deductions affect your overall income.<\/p>\n<p><strong>Get the latest headlines delivered to your inbox each morning.\u00a0<a href=\"https:\/\/www.fingerlakes1.com\/newsletter\/\" target=\"_blank\" title=\"Sign up for our Morning Edition (Opens New Tab)\" aria-label=\"Sign up for our Morning Edition (Opens New Tab)\" rel=\"noopener\">Sign up for our Morning Edition to start your day<\/a>. FL1 on the Go! 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Support our mission by visiting <a href=\"http:\/\/patreon.com\/fl1\" target=\"_blank\" rel=\"noopener\">www.patreon.com\/fl1<\/a> or learn how you send us your local content <a href=\"https:\/\/www.fingerlakes1.com\/submit\/\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Retirees in nine U.S. states are seeing reduced Social Security benefits due to state income taxes. This change&hellip;\n","protected":false},"author":3,"featured_media":24135,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[64,255,711,67,132,68,3567],"class_list":{"0":"post-24134","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-personal-finance","10":"tag-social-security","11":"tag-united-states","12":"tag-unitedstates","13":"tag-us","14":"tag-ymyl"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114765929761883424","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/24134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=24134"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/24134\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/24135"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=24134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=24134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=24134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}