Social Security is crucial for retirement, with nearly 4 in 10 Americans 65 and older relying on it. Some states tax Social Security benefits, impacting retirees’ finances. The federal government taxes benefits based on “combined income” thresholds. Nine states still tax benefits, including Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. While taxes are a consideration, other factors like cost of living and lifestyle offerings should also influence retirement decisions. Planning ahead and utilizing retirement accounts can help reduce taxes and maximize income in retirement.

Read more at Nasdaq: Retirees in These 9 States Risk Losing Some of Their Social Security Checks