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THE FOREIGN SERVICE JOURNAL

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JANUARY-FEBRUARY 2016

85

AFSA NEWS

annuitants of federal annuities.

Social Security is not taxed in

Indiana. Sales tax and use tax

in Indiana is 7 percent.

I OWA

Annuities and pensions are

generally taxable. Amarried

couple with an income for the

year of less than $32,000may

file for exemption, if at least

one spouse or the head of

household is 65 years or older

on Dec. 31. Single persons who

are 65 years or older on Dec.

31 may file for an exemption

if their income is $24,000 or

less. The same income tax

rates apply to annuities as to

other incomes. As of 2014,

Social Security benefits are

not subject to taxation. State-

wide sales tax is 6 percent,

with no more than 1 percent

added in local jurisdictions.

KANSAS

U.S. government pensions

are not taxed. There is an

extra deduction of $850 if the

individual is over age 65. Social

Security is exempt if federal

adjusted gross income is

under $75,000. State sales tax

is 6.3 percent, with additions

of between 1 and 4 percent

depending on jurisdiction.

KENTUCKY

Government pension income

is exempt if the individual

retired before Jan. 1, 1998.

If retired after Dec. 31, 1997,

pension/annuity income up to

$41,110 remains fully exclud-

able for 2015. Social Security

is exempt. Sales and use tax is

6 percent statewide, with no

local sales or use taxes.

LOU I S I ANA

Federal retirement benefits

are exempt from Louisiana

state income tax. There is an

exemption of $6,000 of other

annual retirement income

received by any person age 65

or over. Married filing jointly

may exclude $12,000. State

sales tax is 4 percent with

local additions up to a possible

total of 10.75 percent. Use tax

is 8 percent regardless of the

purchaser’s location.

MA I NE

Recipients of a govern-

ment sponsored pension or

annuity who are filing single

may deduct up to $10,000

($20,000 for married filing

jointly) on income that is

included in their federal

adjusted gross income,

reduced by all Social Secu-

rity and railroad benefits. For

those age 65 and over, there is

an additional standard deduc-

tion of $1,450 (single), $1,150

(married filing single) or

$2,200 (married filing jointly).

General sales tax is now 5.5

percent, 8 percent on meals

and liquor.

MARYLAND

Those over 65 or perma-

nently disabled, or who have

a spouse who is permanently

disabled, may under certain

conditions be eligible for

Maryland’s maximum pension

exclusion of $29,000. Also, all

individuals 65 years or older

are entitled to an extra $1,000

personal exemption in addition

to the regular $3,200 personal

exemption available to all

taxpayers. Social Security is

exempt. See the worksheet