By Jennifer Waters 

Minnesota is looking to become the next state to exempt Social Security income from taxes, a move lawmakers hope will dissuade retirees from fleeing.

Though some might argue that climate is the real culprit behind Minnesota's exodus, the North Star state is among only 13 that slap some kind of tax on Social Security income. Some of those states, among them Connecticut and Montana, have separate calculations and/or income limits to determine taxable Social Security benefits. But Minnesota--like Nebraska, North Dakota, Rhode Island, Vermont and West Virginia--tax Social Security income to the same extent that the federal government does, or on as much as 85% of your benefit.

But before you think about ditching a state because of Social Security taxes, consider what other taxes you're subject to in the new state, such as those on income or other retirement benefits, not to mention state and local sales and property taxes.

Only seven states--Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming--don't tax individual income of any kind, according to the Wolters Kluwer CCH tax and accounting service.

Q: My wife is 13 years younger than I am. We both work but I have higher earnings and a company-funded retirement. I thought I read there's an option where I can claim her [Social Security] benefit when I reach my full retirement age and then when she retires she receives my benefit. Is that correct?

If I claim her retirement when I'm 66, does she get my full benefit? As I will be 79 when she is 66, will she receive my age 70 benefit?

Ken B., San Diego

A: You're out of luck on receiving her benefit. There are opportunities for spouses to collect on the other's benefits, but your situation doesn't lend itself to them. You cannot collect on her benefit until she applies for it. Considering the age difference, you will be well into your own retirement by the time she is first eligible to file, at age 62.

She, however, has options. At age 62, she can apply for spousal benefits, which will be reduced because she will not be at her full retirement age. If she does that, she must also file for her own benefits then. If the benefit on your record is higher, she'll get a combination of benefits that equals the greater amount.

If she waits until her FRA, she can file for spousal benefits on your record that will be 50% of your full benefit, and wait until she turns 70 to collect her own benefit. At that point, her benefits will be larger with delayed retirement credits and may exceed the benefit on your record.

You, too, can wait until you turn 70 to collect DRCs and a bigger monthly check. The DRCs will not be computed into your wife's spousal benefits. However, if you should die first, her survivor's benefit will include them, or be equal to the benefit you receive.

Q: I have power of attorney for an elderly woman with dementia who lives in an assisted-living facility. I have met with the local Social Security office with all supporting documentation to request a change of address to receive the annual statement for income-tax purposes.

SSA's response was "We do not recognize POA." They suggested I bring her into the local office or call the 800 number. This woman's condition has worsened to the point that neither option is possible. Is there any other course of action that I could take?

Brian S., Boca Raton, Fla.

A: Unfortunately, no. It's the Treasury Department that doesn't recognize POA when negotiating federal payments--and that includes Social Security. You must apply to, and be appointed by, SSA to become a representative payee and obtain legal authority to negotiate or manage her benefits. If she already has a representative, that person can request the address change.

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A word about SS numbers on Medicare cards: Thanks to readers who called the National Committee to Preserve Social Security and Medicare, the group's legislative arm has added the removal of SS numbers from Medicare cards to its lobbying agenda for the 114th Congress, and will issue a white paper on the matter soon.

"Both the Government Accountability Office and the Social Security Administration Inspector General have made this recommendation," according to a brief from the group. "It is a way to combat fraud, thus protecting beneficiaries' identity and the integrity of the Medicare program."