Taxes
Dozens of States Will Not Tax Social Security in 2025
GoBankingRates.com released a new report that reveals there are 41 states that will not tax Social Security benefits next year.
Nov. 12, 2024
By Tiffani Jackson
Fort Worth Star-Telegram
(TNS)
The future of Social Security programs in the United States has been up for debate since the presidential election.
Many American retirees wonder how their benefits will be affected following Donald Trump’s pledge to eliminate taxes on Social Security income during his presidential campaign.
Ultimately, how much of your Social Security check you keep depends largely on where you live, but luckily, that won’t be a problem for Texans. About 4.4 million Texans recieve Social Security benefits, recent figures show.
A new report by GoBankingRates.com reveals that Texas is one of 41 states that will not tax Social Security benefits next year.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Virginia
- Washington
- Wisconsin
- Washington, D.C.
- Wyoming
What Social Security changes are expected in 2025?
A number of significant changes to Social Security benefits for retirees in 2025 have been announced by the Social Security Administration (SSA). Here’s what you can expect:
- Cost-of-living adjustment increase: The SSA will increase payments by 3.2% to help seniors deal with growing living expenses, based on inflation rates.
- Higher earnings limits for working retirees: Earning up to $22,500 a year without any reduction in benefits is now possible for those under full retirement age. The earnings cap for retirees who attain full retirement age within the year is $60,000.
- Changes to full retirement age: The age for retiring younger generations will eventually reach 68. This change is part of long-term strategies to guarantee the viability of the Social Security program as life expectancy rises.
- Maximum benefit amount increase: People who reach full retirement age will get a higher maximum monthly Social Security payout. The maximum monthly payout will increase to $3,756 in 2025 compared to around $3,627 in 2024.
- Taxable earnings cap increase: The Social Security maximum taxable wages will rise from $160,200 in 2024 to $165,600 in 2025.
- Enhanced online services for retirees: More tools will be available to retirees for benefit management, appointment scheduling, and benefit optimization advice.
- Medicare premium adjustments: Those whose Medicare Part B premiums are automatically deducted will see a modest increase in their take-home Social Security benefits in 2025. To make sure they’re ready for this change, the SSA encourages recipients to check their statements and adjust their budgets appropriately.
________
©2024 Fort Worth Star-Telegram. Visit star-telegram.com. Distributed by Tribune Content Agency LLC.