SOCIAL SECURITY LAW: More States Lure SS Beneficiaries with Tax Breaks

June 9, 2010

Washington – Several states are attracting retirees by giving them tax breaks and tax exemptions for their Social Security benefits, a Forbes magazine report said.

According to the report, the top states for retirees include Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming, where residents 62 years or older are not taxed for their personal income at all. In other states such as Illinois, Mississippi and Pennsylvania, they exempt all private and public pensions, including withdrawals from individual retirement accounts. In Kentucky, the exemption amounts to about $82,000 per couple in pension and IRA income.

Retirees and elderly consider these states as retirement havens where they get to enjoy and spend their money on themselves without worrying so much on deduction and taxes.