Table of Contents Table of Contents
Previous Page  86 / 104 Next Page
Basic version Information
Show Menu
Previous Page 86 / 104 Next Page
Page Background

86

JANUARY-FEBRUARY 2016

|

THE FOREIGN SERVICE JOURNAL

and instructions in the Mary-

land Resident Tax Booklet.

General sales tax is 6 percent,

9 percent on liquor.

MASSACHUSETTS

Federal pensions and Social

Security are excluded from

Massachusetts gross income.

Each taxpayer over age 65 is

allowed an additional $700

exemption on other income.

Sales tax is 6.25 percent.

MI CH I GAN

In 2012 and subsequent years,

pension benefits included in

adjusted gross income from a

private pension system or an

individual retirement account

are deductible for those born

before 1946, to a maximum

of $47,309 for a single filer, or

$94,618 for joint filers; public

pensions are exempt. If born

after 1946 and before 1952,

the exemption for public and

private pensions is limited

to $20,000 for singles and

$40,000 for married filers.

Those born after 1952 are

ineligible for any exemption

until age 67. Social Security

is exempt. Full details at:

www.michigan.gov/docu- ments/taxes/PensionBen- efitsChart_479546_7.pdf.

Michigan’s state sales tax rate

is 6 percent. There are no city,

local or county sales taxes.

MI NNESOTA

Social Security income is

taxed by Minnesota to the

same extent it is on your

federal return. If your only

income is Social Security,

you are not required to file

an income tax return. All

federal pensions are taxable,

than $33,200. Those over age

65 can exempt an additional

$800 of interest income for

single taxpayers and $1,600

for married joint filers. Social

Security is subject to tax. Mon-

tana has no general sales tax,

but tax is levied on the sale of

various commodities.

NEBRASKA

U.S. government pensions

and annuities are fully taxable.

Social Security is taxable.

State sales tax is 5.5 percent,

with local additions of up to 2

percent.

NEVADA

No personal income tax. Sales

and use tax varies from 6.85

to 8.1 percent, depending on

local jurisdiction.

NEW HAMPSH I RE

No personal income tax. There

is no inheritance tax. There is a

5-percent tax on interest/divi-

dend income over $2,400 for

singles ($4,800married filing

jointly). A$1,200 exemption is

available for those 65 or over.

No general sales tax.

NEW J ERSEY

Pensions and annuities from

civilian government service

are subject to state income

tax, with exemptions for

those who are age 62 or older

or totally and permanently

disabled. However, see this link

for the distinction between

the “Three-year method” and

the “General Rule method” for

contributory pension plans:

www.state.nj.us/treasury/

taxation/njit6.shtml.

Singles and heads of house-

holds can exclude up to

but single taxpayers who

are over age 65 or disabled

may exclude some income

if federal adjusted gross

income is under $33,700 and

non-taxable Social Security

is under $9,600. For a couple,

the limits are $42,000 for

adjusted gross income and

$12,000 for nontaxable Social

Security. Statewide sales and

use tax is 6.875 percent; some

local additions may increase

the total to 9.53 percent.

MI SS I SS I PP I

Social Security, qualified

retirement income from

federal, state and private

retirement systems, and

income from individual retire-

ment accounts are exempt

fromMississippi tax. There

is an additional exemption of

$1,500 on other income if over

65. Statewide sales tax is 7

percent.

MI SSOUR I

Public pension income may

be deducted if Missouri

adjusted gross income is less

than $100,000 when mar-

ried filing jointly or $85,000

for single filers, up to a limit

of $36,442 for each spouse.

The maximum private pension

deduction is $6,000. You may

also deduct 100 percent of

Social Security income if over

age 62 and federal adjusted

gross income is less than the

limits above. Sales tax is 4.225

percent; local additions may

add another 2 percent.

MONTANA

There is a $3,980 pension

income exclusion if federal

adjusted gross income is less

$15,000 of retirement income;

those married filing jointly up

to $20,000; those married

filing separately up to $10,000

each. These exclusions are

eliminated for New Jersey

gross incomes over $100,000.

Residents over 65 may be eli-

gible for an additional $1,000

personal exemption. Social

Security is not taxed. State

sales tax is 7 percent.

NEW MEX I CO

All pensions and annuities

are taxed as part of federal

adjusted gross income.

Taxpayers 65 and older may

exempt up to $8,000 (single)

or $16,000 (joint) from any

income source if their income

is under $28,500 (individual

filers) or $51,000 (married

filing jointly). The exemption is

reduced as income increases,

disappearing altogether at

$51,000. NewMexico has a

gross receipts tax, instead of

a sales tax, of 5.125 percent;

county and city taxes may add

another 6.625 percent in some

jurisdictions.

NEW YORK

Social Security, U.S. govern-

ment pensions and annuities

are not taxed. For those over

age 59½, up to $20,000 of

other annuity income (e.g.,

Thrift Savings Plan) may

be excluded. See NewYork

state’s Publication 36 at

www.tax.ny.gov/pdf/publica- tions/income/pub36.pdf for

details. Sales tax is 4 percent

statewide. Other local taxes

may add up to an additional 5

percent.