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Nebraska News

Central region

Give Them a Break

by Donya Currie - 1/01/2012

In a state ranked as the third-least friendly to retirees in terms of taxation, AARP is backing legislation that would reduce taxes on Social Security benefits.

Kiplinger's Personal Finance magazine (July 2011) gave the state the low ranking in part because Nebraska is one of five states that fully tax pension income, and one of only six states to tax Social Security benefits at the same rate as the federal government. For a single Nebraska retiree with combined annual income of $25,000 or more, at least 50 percent of Social Security benefits are taxable. Combined income includes adjusted gross income, nontaxable interest and half of Social Security benefits.

To learn more about the issue and how to get involved, go to aarp.org/ne, email neaarp@aarp.org or call 1-866-389-5651 toll-free.

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