Did you know that Nebraska, along with 13 other states, tax Social Security income.
Here is good news for Nebraskans.
Nebraska will phase out the tax beginning this year with a reduction of 5%. The state currently exempts state tax for married couples earning less than $59,100 a year. For single individuals, those making less than $44,460.
In 2022, it is a 20% reduction, 30% in 2023, 40% in 2024, and 50% in 2025.
After the 5th year, the legislature will review the state revenue to determine how to extend the phaseout.
The goal is to get to 100% by 2030.
By the way, the new law took effect September 1, 2021.