Social Security taxes will change this month, reducing the amount some will receive in their checks.
Some states will collect more taxes on Social Security benefits than others, depending on an individual or couple’s total income.
Nine states will raise Social Security taxes in September, reducing the overall benefit of the monthly check.
Recipients living in Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont or West Virginia may have to pay more.
The exact impact will depend on the state you live in and your overall income, meaning a larger Social Security check will likely result in higher taxes owed.
Nine states will raise taxes on social security payments in September
About 40 percent of Social Security recipients must pay income taxes on their benefits, usually as a result of substantial income separated from their benefits.
The tax will be deducted when you file a federal tax return as an individual or a joint return with your spouse.
About 68 million Americans receive Social Security in some form each month, costing about $1.5 trillion a year.
The highest retirement payments are as high as $4,873, although the figure is likely to be lower for most beneficiaries.
In fact, the average retirement check is worth $1,918 per month, according to the Social Security Administration.
“The maximum benefit depends on the age at which you retire. For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822,” the SSA says on its website.
‘However, if you retire at age 62 in 2024, your maximum benefit would be $2,710.
“If you retire at age 70 in 2024, your maximum benefit would be $4,873,” the site explains.
Nearly nine out of ten people age 65 or older receive a Social Security benefit, and those benefits tend to account for about 30 percent of their income.
About 68 million Americans receive Social Security, which costs about $1.5 trillion a year.
Payments tend to be staggered throughout the month due to the large number of people receiving checks.
For those who have been claiming Social Security since 1997, or claim both retirement benefits and Supplemental Security Income (SSI), these were paid last week, on September 3.
Those who only receive Supplemental Security Income (SSI) benefits, not retirement, should have received their checks on August 30, since the usual payday, the 1st of each month, fell on a weekend.
The highest SSI payment that can currently be claimed for an individual is $943 and $1,415 for a couple.
Other beneficiaries should have started receiving their payments this week, depending on their date of birth.
If you were born between the 1st and 10th of any month, you will receive your monthly check tomorrow, September 11.
Applicants with birthdays between the 11th and 20th of any given month will receive their payments the following week, on September 18.
The last group, whose birthdays fall between the 21st and 31st of the month, will receive their benefits on September 25.
The SSA recommends waiting three business days after the due date before contacting them about a late payment.
This comes after the publication of a new report which concluded that Social Security is expected to run out of funds by 2035.
An ageing population is driving up the cost of the programme as fewer people contribute and spending outstrips income.
The latest annual report report A report by the Social Security Board of Trustees found that the program will only be able to pay full benefits for the next 11 years, which is a year later than previous estimates.
