Retirees in these states may be taxed on Social Security benefits: Connecticut is one
- The federal government taxes seniors' Social Security benefits if their income exceeds certain thresholds. Nine states, including Vermont, do so too.
- If your income is above $25,000, you'll likely have to give a chunk of your benefits back to the IRS.
- Connecticut doesn't tax the Social Security benefits of any of its residents with AGIs under $100,000 for married couples filing jointly or $75,000 for all other filing statuses.
No one enjoys tax time, but if you're a senior, it can be especially difficult. Not only are you likely living off a fixed income, but the IRS typically doesn't withhold anything from your retirement account withdrawals upfront, so you may wind up with a bill when you file your return.
Retirement account withdrawals and earnings from a job may not be the only taxable income you have, either. The federal government taxes seniors' Social Security benefits if their income exceeds certain thresholds.
Many states exempt Social Security benefits from state income tax. But Connecticut is one of the nine states that taxes Social Security benefits as they are taxed at the federal level.
But before you panic, Connecticut does provide many exemptions. See if you qualify below.
How Social Security benefits taxes work
Social Security benefits are taxed based on your marital status and provisional income. This is your adjusted gross income (AGI), plus nontaxable interest from municipal bonds, and half your annual Social Security benefit.
The table can help you determine what percentage of your checks could be taxable:
| Single/Separate/Widow(er)/HoHCombined Income | Married JointCombined Income | Percentage of Social SecurityBenefits that are Taxed |
| Less than $25,000 | Less than $32,000 | 0% |
| $25,000-$34,000 | $32,000 - $44,000 | Up to 50% |
| Greater than $34,000 | Greater than $44,000 | Up to 85% |
If your provisional income falls below $25,000 for a single adult or $32,000 for a married couple, you probably don't have to worry about benefit taxes right now. But if the tax stays on the books, you could owe them in the future as average incomes and Social Security checks rise. The taxation thresholds listed above haven't changed in more than 30 years.
If you fall somewhere in the taxable range, you'll likely have to give a chunk of your benefits back to the IRS. Your tax professional or tax-filing software will lump the taxable percentage of your Social Security benefit in with the remainder of your taxable income to determine how much you owe.
Do I have to pay Social Security benefits taxes in Connecticut?
Connecticut taxes Social Security benefits as they are taxed at the federal level, but with full or partial exemptions for most residents.
Connecticut doesn't tax the Social Security benefits of any of its residents with AGIs under $100,000 for married couples filing jointly or $75,000 for all other filing statuses.
Those with AGIs over this limit qualify for a partial exemption where no more than 25% of their Social Security benefits will be taxed.
This table can help you figure out if you qualify for an exemption in Connecticut.
| Filing Status | AGI | Exemption? |
| Single/Separate/Widow(er)/HoH | < $75000 | Full Exemption |
| Amounts >= $75,000 | Partial Exemption | |
| Married Joint Filers | < $100,000 | Full Exemption |
| Amounts >= $100,000 | Partial Exemption |
What other states tax Social Security benefits?
In addition to Connecticut, eight other states tax Social Security benefits in some form.
However, many of them also provide exemptions.
They include Colorado, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont and West Virginia.
Contributing: Kailey Hagen, The Motley Fool