This article is going to show you which states do not tax Social Security benefits according to data from the Tax Foundation, a tax policy nonprofit organization. It recently published a map that shows how each state taxes Social Security benefits.
To verify the Tax Foundation’s data, I researched information for the 26 states (and Washington, D.C.) that don’t tax Social Security income at all:
Money expert Clark Howard says if you want to profit more from your money, you'll probably want to delay drawing Social Security.
See the full report from the Tax Foundation here. You'll also see states that exempt the portion of Social Security benefits that are included in federal taxable income.
Conclusion
As you get closer to retirement, you may be wondering when you should start taking your Social Security benefits.
Clark recently turned 65 years old, and he says he's going to wait a few more years:
"Every year that you wait, you get an additional 8% in your check," he says. "And once you start taking it, every increase is based on the base where you started. So you end up with a lot more money to live on later in life if you wait to take Social Security."
In addition to Clark's advice on how your age affects your Social Security payments, he says you also need to consider your current financial situation and your retirement plans. Here's more about the best time to take your Social Security.
[ This article was originally published on Clark.com ]
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