Minnesota lawmakers plan to make Social Security payments tax free.
This will make it only eleven states that tax Social Security payments.
How many people could benefit?
If this is successful it could over 350,000 seniors could be seeing higher payments. The cost of doing away with the tax is estimated at $509 million each year. Read more about it here.
The proposal comes after the Governor of New Mexico signed a bill in early March that exempts those making less than $100,000 from paying taxes on their Social Security benefits.
Couples earning less than $150,000 won’t need to pay taxes on them either.
The tax relief will benefit 115,000 by earning $710 more each year.
The maximum benefit depends on age, but waiting usually pays off. If you wait until full retirement age (66 or 67) you can get up to $3,345.
If you wait until 70 years old you can get up to $4,194.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].