Table of Contents Table of Contents
Previous Page  80 / 100 Next Page
Basic version Information
Show Menu
Previous Page 80 / 100 Next Page
Page Background

80

JANUARY-FEBRUARY 2017

|

THE FOREIGN SERVICE JOURNAL

AFSA NEWS

the “Three-Year method”

and the “General Rule

method” for contributory

pension plans:

www.state.

nj.us/treasury/taxa

tion/njit6.shtml. Singles

and heads of households

can exclude up to $15,000

of retirement income; those

married filing jointly up

to $20,000; those mar-

ried filing separately up to

$10,000 each. These exclu-

sions are eliminated for New

Jersey gross incomes over

$100,000. Residents over

65 may be eligible for an

additional $1,000 personal

exemption. Social Security

is excluded from taxable

income. 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 fil-

ers) or $51,000 (married

filing jointly). The exemp-

tion is reduced as income

increases, disappearing

altogether at $51,000. New

Mexico has a gross receipts

tax, instead of a sales tax,

of 5.125 percent; county

and city taxes may increase

the total to 6.625 percent in

some jurisdictions.

NEW YORK

Social Security, U.S. gov-

ernment 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

N.Y. Tax Publication 36 at

www.tax.ny.gov/pdf/pub

lications/income/pub36.

pdf for details. Sales tax is

4 percent statewide. Other

local taxes may add up to an

additional 5 percent.

NORTH CAROL I NA

Pursuant to the “Bailey”

decision (see

http://dornc

.

com/taxes/individual/

benefits.html), government

retirement benefits received

by federal retirees who had

five years of creditable ser-

vice in a federal retirement

system on Aug. 12, 1989, are

exempt from North Caro-

lina income tax. Those who

do not have five years of

creditable service on Aug.

12, 1989, must pay North

Carolina tax on their federal

annuities. In Tax Year 2014

and later, the $4,000 deduc-

tion is no longer available.

For those over 65, an extra

$750 (single) or $1,200

(couple) may be deducted.

Social Security is excluded

from taxable income. State

sales tax is 4.75 percent;

local taxes may increase this

by up to 3 percent.

NORTH DAKOTA

All pensions and annuities

are fully taxed. Social Secu-

rity is excluded from taxable

income. General sales tax

is 5 percent; 7 percent on

liquor. Local jurisdictions

impose up to 3 percent

more.

OH I O

Retirement income is taxed.

Taxpayers 65 and over may

take a $50 credit per return.

In addition, Ohio gives a tax

credit based on the amount

of the retirement income

included in Ohio Adjusted

Gross Income, reaching a

maximum of $200 for any

retirement income over

$8,000. Social Security

is excluded from taxable

income. State sales tax is

5.75 percent. Counties and

regional transit authorities

may add to this, but the

total must not exceed 8.75

percent.

OKLAHOMA

Individuals receiving FERS/

FSPS or private pensions

may exempt up to $10,000,

but not to exceed the

amount included in the Fed-

eral Adjusted Gross Income.

Since 2011, 100 percent of

a federal pension paid in

lieu of Social Security (i.e.,

CSRS and FSRDS—”old

system”—including the

CSRS/FSRDS portion of

an annuity paid under both

systems) is exempt. Social

Security included in FAGI is

exempt. State sales tax is

4.5 percent. Local and other

additions may bring the

total up to 9.5 percent.

OREGON

Generally, all retirement

income is subject to Oregon

tax when received by an

Oregon resident. However,

federal retirees who retired

on or before Oct. 1, 1991, may

exempt their entire federal

pension; those who worked

both before and after Oct.

1, 1991, must prorate their

exemption using the instruc-

tions in the tax booklet. For

those over age 62, a tax

credit of up to 9 percent of

taxable pension income is

available to recipients of

pension income, including

most private pension income,

whose household income was

less than $22,500 (single)

and $45,000 (joint), and who

received less than $7,500

(single)/$15,000 (joint) in

Social Security benefits. The

credit is the lesser of the tax

liability, or 9 percent of tax-

able pension income. Social

Security is excluded from

taxable income. Oregon has

no sales tax.

PENNSYLVAN I A

Government pensions and

Social Security are not

subject to personal income

tax. Pennsylvania sales tax

is 6 percent. Other taxing

entities may add up to 2

percent.

PUERTO R I CO

The first $11,000 of income

received from a federal

pension can be excluded for

individuals under 60. For

those over 60, the exclusion

is $15,000. If the individual

receives more than one

federal pension, the exclu-

sion applies to each pension

or annuity separately. Social

Security is excluded from

taxable income.

RHODE I S LAND

U.S. government pensions

and annuities are fully taxable.

Social Security is taxed to the