Does every state tax pensions?

Pensions are considered ordinary income in the eyes of the IRS. So is Social Security income above the federal tax threshold. Adding state tax liabilities to your pension on top of taxes on Social Security income is a poor retirement strategy. If you are lucky enough...

Should I worry about state income taxes on my Social Security?

Some states do tax Social Security benefit income. These income Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia. Minimizing tax liabilities should be a key part of your...

Do sources of retirement income matter?

Wages, interest, non-qualified dividends, and pension income are all figured into your modified adjusted gross income, which in turn is used to determine whether you cross the federal tax threshold on Social Security benefit income. These sources of income, plus the...

When do I have to pay federal taxes on my Social Security income?

Not all of your Social Security income is subject to federal tax. In fact, you might not have to pay any taxes on benefits, depending on your income and on the source of your income. In 2017, if you filed an individual tax return, and your modified adjusted gross...

What are BACK Social Security benefits?

In some cases, you are entitled to receive payments you were owed but didn’t collect yet. For example, let’s say you waited almost a year after reaching your full retirement age to file an application for benefits. The Social Security Administration will pay you...