Lawmakers in two states are pushing to change rules around the taxation of Social Security benefits.
Why It Matters
Tens of millions of Americans receive Social Security benefits every month , with some 40 percent of them paying federal income taxes on their entitlements. Only nine states have a state-level levy on retirement incomes : Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
What To Know
Social Security claimants in Vermont and Utah could end up with some extra cash in their pockets if two separate proposals become law.
In Utah, Governor Spencer Cox has proposed an elimination of state taxes on Social Security income. Currently, taxes start at $45,000 in income for single filers and $75,000 for joint filers.
The proposal will need to be reviewed, along with the rest of Cox’s budget, before it can become law. The Utah Legislature will determine the state’s budget for the upcoming fiscal year, which begins in July. Lawmakers are set to convene for the 2025 general session on January 21, and the budget will be finalized on March 7…