Page 57 - Foreign Service Journal - February 2013

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increase the total to as much
as 9.9 percent.
Pensions and annuities are
fully taxable for residents.
Social Security is exempt
if Federal Adjusted Gross
Income is less than $50,000
for singles or $60,000 for
joint flers. Statewide sales
tax is 6.35 percent. No local
Pension exclusions per
person: $2,000 is exempt
under age 60; $12,500
if age 60 or over. There
is an additional standard
deduction of $2,500 if age 65
or over if you do not itemize.
Social Security income
is excluded from taxable
income. Delaware does not
impose a sales tax.
Pension or annuity exclusion
of $3,000 is applicable if 62
years or older. Social Security
is excluded from taxable
income. Sales and use tax is
6 percent, with higher rates
for some commodities.
There is no personal income,
inheritance or gift tax. Florida
repealed the “intangibles
tax” in 2007. Florida imposes
state sales tax and a use
tax of 6 percent. Counties
impose further taxes from
0.5 to 3.5 percent.
$35,000 of retirement
income is excluded for those
who are 62 years or older, or
totally disabled. Beginning in
tax year 2012, up to $65,000
of retirement income will
be excludable for taxpayers
that are 65 or older. Social
Security is excluded from
taxable income. Sales tax
is 4 percent statewide, with
additions of up to 3 percent
depending on jurisdiction.
Pension and annuity distri-
butions from a government
pension plan are not taxed in
Hawaii. Social Security is not
taxed. Hawaii charges a gen-
eral excise tax of 4 percent
instead of sales tax.
If the individual is age 65 or
older, or age 62 and disabled,
Civil Service Retirement
System and Foreign Service
Retirement and Disability
System pensions only qualify
for a deduction in 2012 of up
to $27,876 for a single return
and up to $41,814 for a joint
return. Up to $27,876 may be
deducted by the unmarried
survivor of the annuitant. The
deduction is not available
if married fling separately;
nor do Federal Employees’
Retirement System or For-
eign Service Pension System
pensions qualify for this
deduction. The deduction
is reduced dollar for dollar
by Social Security benefts.
Social Security itself is not
taxed. Idaho state sales tax
is 6 percent; some local
jurisdictions add as much as
another 3 percent.
Illinois does not tax U.S. gov-
ernment pensions or Social
Security. State sales tax is
6.25 percent. Local additions
can raise sales tax to 10.5
percent in some jurisdictions.
If the individual is over age
62, the Adjusted Gross
Income may be reduced
by the frst $2,000 of any
pension, reduced dollar for
dollar by Social Security
benefts. There is also a
$1,000 exemption if over 65,
or $1,500 if Federal Adjusted
Gross Income is less than
$40,000. There is no pension
exclusion for survivor annui-
tants of federal annuities.
Social Security is not taxed in
Indiana. Sales tax and use tax
in Indiana is 7 percent.
Generally taxable. For 2009
and later tax years, how-
ever, a married couple with
an income for the year of
less than $32,000 may fle
for exemption, if at least
one spouse or the head of
household is 65 years or
older on Dec. 31, and single
persons who are 65 years or
older on Dec. 31 may fle for
an exemption if their income
is $24,000 or less. Over age
55, there is a pension/retire-
ment income exclusion of up
to $6,000 for single, head of
household or qualifying wid-
ower flers and up to $12,000
for married fling jointly. The
same income tax rates apply
to annuities as to other
incomes. Iowa is phasing out
taxation of Social Security
benefts, but a portion is still
subject to tax in 2012. State-
wide sales tax is 6 percent,
with no more than 1 percent
added in local jurisdictions.
U.S. government pensions
are not taxed. Extra deduc-
tion of $850 if over 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
Government pension income
is exempt if retired before
Jan. 1, 1998. If retired after
Dec. 31, 1997, pension/annu-
ity income up to $41,110
remains fully excludable
for 2012. Social Security is
exempt. Sales and use tax is
6 percent statewide, with no
local sales or use taxes.
Federal retirement benefts
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 fling
jointly may exclude $12,000.