Page 60 - Foreign Service Journal - February 2013

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60
FEBRUARY 2013
|
THE FOREIGN SERVICE JOURNAL
AFSA NEWS
receives more than one
federal pension, the exclu-
sion applies to each pension
or annuity separately. Social
Security is not taxed.
RHODE ISLAND
U.S. government pensions
and annuities are fully tax-
able. Sales tax is 7 percent.
SOUTH CAROLINA
Individuals under age 65 can
claim a $3,000 deduction on
qualifed retirement income;
those 65 years of age or over
can claim a $10,000 deduc-
tion on qualifed retirement
income. A resident of South
Carolina who is 65 years or
older may claim a $15,000
deduction against any type
of income ($30,000 if both
spouses are over 65), but
must reduce this fgure by
any retirement deduction
claimed. Social Security is
not taxed. Sales tax is 6 per-
cent plus 1 percent in some
counties. Seniors 85 and over
pay 5 percent.
SOUTH DAKOTA
No personal income tax or
inheritance tax. State sales
and use tax is 4 percent;
municipalities may add up to
an additional 2 percent.
TENNESSEE
Social Security, pension
income and income from
IRAs and TSP are not subject
to personal income tax.
Most interest and dividend
income is taxed at 6 per-
cent if over $1,250 (single
flers) or $2,500 (married
fling jointly). However, for
tax year 2012 and subse-
quently, those over 65 with
total income from all sources
of less than $26,200 for a
single fler and $37,000 for
joint flers are completely
exempt from all taxes on
income. State sales tax is 7
percent with between 1.5 and
2.75 percent added, depend-
ing on jurisdiction.
TEXAS
No personal income tax or
inheritance tax. State sales
tax is 6.25 percent. Local
options can raise the rate to
8.25 percent.
UTAH
Utah has a fat tax rate of 5
percent of all income. For
taxpayers over 65 there is a
retirement tax credit of $450
for single flers and $900 for
joint flers. This is reduced
by 2.5 percent of income
exceeding $25,000 for single
flers and $32,000 for joint
flers. See the state Web site
for details. State sales tax
is 4.7 percent; local option
taxes may raise the total to
as much as 7.95 percent.
VERMONT
U.S. government pensions
and annuities are fully
taxable. State general sales
tax is 6 percent; local option
taxes may raise the total to
7 percent (higher on some
commodities).
VIRGINIA
Individuals over age 65 can
take a $12,000 deduction.
The $12,000 deduction
is reduced by one dollar
for each dollar by which
Adjusted Gross Income
exceeds $50,000 for single,
and $75,000 for married,
taxpayers. All taxpayers over
65 receive an additional
personal exemption of $800.
Social Security income is
exempt. The estate tax was
repealed for all deaths after
July 1, 2007. The general
sales tax rate is 5 percent
(4 percent state tax and 1
percent local tax).
WASHINGTON
No personal income tax.
State sales tax is 6.5 percent;
rates are updated quarterly.
Local taxes may increase the
total to 9.5 percent.
WEST VIRGINIA
$2,000 of any civil or state
pension is exempt. Social
Security income is taxable
only to the extent that
the income is includable
in Federal Adjusted Gross
Income. Taxpayers 65 and
older or surviving spouses
of any age may exclude the
frst $8,000 (individual flers)
or $16,000 (married fling
jointly) of any retirement
income. Out-of-state
government pensions qualify
for the $8,000 exemption.
State sales tax is 6 percent.
WISCONSIN
Pensions and annuities are
fully taxable. Those age
65 or over may take two
personal deductions totaling
$950. Benefts received
from a federal retirement
system account established
before Dec. 31, 1963, are not
taxable. Wisconsin does not
tax Social Security benefts
included in Federal Adjusted
Gross Income. For tax years
after 2009, those over 65
and with an FAGI of less than
$15,000 (single flers) or
$30,000 (joint flers)may
take a $5,000 deduction
on income from federal
retirement systems or IRAs.
State sales tax is 5 percent;
most counties charge an
extra 0.5 percent.
AFSA
TAX
GUIDE
online at
www.afsa.org/
afsa_tax_guide.
aspx
2012
TAX
GUIDE