Social Security Snapshot
Alabama
Its warm weather and rich culture make retiring in Alabama one of the best-kept secrets of retirement options. From small-town Southern charms to beautiful museums, there is no shortage of exciting attractions for retirees to enjoy. The Social Security income you’ve worked so hard to accrue will pay off for you now. And to ensure you receive all of the benefits you’re entitled to, turn to a Social Security Advisor that is a Registered Social Security Analyst to guide you.
Social Security for Alabamans — here’s what you can expect:
- Retirement benefits
- Benefits for disabled workers and their dependents
- Benefits to the families of deceased workers
You may also be entitled to:
- Supplemental Security Income program (SSI) – a needs-based program for people ages 65+ and people with disabilities, regardless of age.
- Assistance if you are a Medicare beneficiary with limited income to apply for extra help with the cost of prescription drugs (Medicare Prescription Drug Program.)
Social Security: It’s tax-free in Alabama
While the IRS may tax you on up to 85% of on Social Security benefits, all Social Security income is tax-free on your Alabama state income tax return —regardless of income or the size of your Social Security benefit.
What you need to know as an Alabama retiree:
- Alabama is tax-friendly toward retirees
- Social Security income is not taxed
- Homestead Exemptions apply (a tax break for owners of single-family, primary residence)
- Withdrawals from retirement accounts are fully taxed
- Wages are taxed at normal rates
- Public and private pension income are not taxed.
Find a Social Security Advisor that has the RSSA credential.
If your planning for retirement in Alabama, advisors that are Registered Social Security Analysts can help you gain far more Social Security income by making the optimal claiming decisions. Our clients have realized