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Taxes for Retirees in Nebraska

By    |   Monday, 21 Mar 2016 08:19 PM

For those considering retirement in Nebraska, there are a few things that prospective residents need to keep in mind such as how many taxes Nebraska imposes on retirees.

Other aspects of taxation that individuals should consider are how a state treats taxes of retirement income, inheritances, Social Security, and estates.

According to Kiplinger, Nebraska is not as friendly
as some other states when it comes to giving retirees exceptional state tax breaks.

In addition to those categories, it is also helpful to be aware of how much property taxes and sales taxes a state imposes as well. The Nebraska Department of Economic Trends reported that the state sales tax is permanently set at 5.5 percent and with that previous service sales taxes mandated were repealed.

An Extremely Simple Way to Determine If You're Ready to Retire — Find Out Now

However, Nebraska was among 33 states that impose a graduated income tax rate, which meant that households with lower incomes were taxed at lower rates than households with higher incomes. This tax setup obviously worked best for retirees who have low to modest retirement incomes.

But for retirees dependent on Social Security in their golden years, MarketWatch reported that Nebraska taxes Social Security income, unlike most states. The good news is that Nebraska taxed at the same rate as the federal government, so for married retirees with a combined annual income of $58,000 or less and single retirees with a yearly salary of $43,000 or less escaped the state tax.

If you're expecting a windfall when you hit retirement age, Nebraska will tax your inheritance; however, there is no estate tax if you should decide to pass down your wealth, according to MarketWatch.

For new retirees, Nebraska has installed beneficial tax breaks.

"Starting in 2015, Nebraska will let military retirees choose to either exclude 40 percent of military retirement income for seven consecutive taxable years or to exclude 15 percent of that income for all taxable years starting the year they turn age 67," reported Kiplinger.

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For those considering retirement in Nebraska, there are a few things that prospective residents need to keep in mind such as how many taxes Nebraska imposes on retirees.
nebraska, retirement, taxes, retirees
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2016-19-21
Monday, 21 Mar 2016 08:19 PM
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