Social Security and State Taxation

State Taxation of Social Security Benefits

13 states tax Social Security Benefits to some degree.  There are various other rules for other pension income.

New York Taxation of Social Security Benefits

New York does not tax Social Security Benefits, so it is a tax favored state for retirees in some aspects.

Generally, New York exempts pension income from taxation if it is paid by the federal and state governments and some public authorities. 

Connecticut Taxation of Social Security Benefits

Connecticut exempts from its income tax the Social Security income the federal government exempts from its income tax. 

For the portion of Social Security included in income by the federal government, Connecticut taxes Social Security Benefits for higher income people.  Social Security taxable in Connecticut if your AGI is more than $50,000 for single and $60,000 for married couples filing jointly.

Connecticut also exempts from its income tax 100% of railroad retirement income and 50% of federally taxable military retirement income. It does not exempt other types of pension income.

There have been numerous proposals and bills to exempt Social Security Benefits in Connection from taxation, but none have made it into law yet.

 

Elder, Wills, Estates, Trusts, Special Needs Tax & Business Law; Attorney John Sweeney

Sweeney Legal, LLC, provides legal, practical, and business counsel to Seniors, families, and businesses in the Fairfield, Connecticut area, including the communities of Bridgeport, Bethel, Brookfield, Danbury, Darien, Easton, Fairfield, New Canaan, Newtown, Norwalk, Redding, Ridgefield, Stamford, Weston, Westport and Wilton. John is also licensed in New York serving Westchester County including the towns of Bedford, Lewisboro, Mount Kisco, North Salem, Pound Ridge, and Somers.

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