The Foreign Service Journal, January-February 2014

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2014 77 AFSA NEWS 2013 AFSA TAX GUIDE VERMONT Individuals domiciled in Vermont are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. The 2013 tax rate ranges from 3.55 percent on taxable income under $36.250 for singles and $60,550 for joint filers to a maximum of 8.95 percent on tax- able income over $398,350 for singles and joint filers. Write: Vermont Department of Taxes, Taxpayer Services Divi- sion, 133 State St., Montpelier VT 05633-1401. Phone: (802) 828-2865. E-mail: Link through the website’s “Contact Us” tab. Website: www.state.vt.us/tax VIRGINIA Individuals domiciled in Virginia are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Individuals domiciled elsewhere are also considered residents for tax purposes for the portion of any calendar year in which they are physically present in the state for 183 days or more. These individu- als should file using Form 760. In addition, Virginia requires non-residents to file Form 763 if their Virginia Adjusted Gross Income (which includes any federal salary paid during time they are residing in Virginia) exceeds $11,950 for single filers and married filing separately, or $23,900 for married filing jointly. Individual tax rates are: 2 percent if taxable income is less than $3,000; $60 plus 3 percent of excess over $3,000 if taxable income is between $3,000 and $5,000; $120 plus 5 percent of excess over $5,000 if taxable income is between $5,000 and $17,000; and $720 plus 5.75 percent if taxable income is over $17,000. In addition, using Form R-1H, Virginia allows employers of household help to elect to pay state unemployment tax annually instead of quarterly. Write: Virginia Department of Taxation, Office of Customer Services, P.O. Box 1115, Richmond VA 23218-1115. Phone: (804) 367-8031. E-mail: Link through the website’s “Contact Us” tab. Website: www.tax.virginia.gov WASHINGTON There is no state income tax and no tax on intangibles such as bank accounts, stocks and bonds. Residents may deduct Washington sales tax on their federal tax returns if they itemize deductions. State tax rate is 6.5 percent and local additions can increase that to 9.6 percent in some areas. Write: Washington State Department of Revenue, Taxpayer Services, P.O. Box 47478, Olympia WA 98504-7478. Phone: toll-free (800) 647-7706. E-mail: Link through the website’s “Contact Us” tab. Website: www.dor.wa.gov WEST VIRGINIA There is no tax liability for out-of-state income if the individual has no permanent residence in West Virginia, has a perma- nent residence elsewhere and spends no more than 30 days of the tax year in West Virginia. However, non-resident domicil- iaries are required to file a return on Form IT-140 for all income derived fromWest Virginia sources. Tax rates rise in four steps from 4 percent of taxable income over $10,000 for all filers, to 6.5 percent of taxable income for all filers over $60,000. Write: Department of Tax and Revenue, Taxpayer Services Division, P.O. Box 3784, Charleston WV 25337-3784. Phone: toll-free 1 (800) 982-8297, or (304) 558-3333. E-mail: TaxWVTaxAid@wv.gov . Website: www.wvtax.gov WISCONSIN Individuals domiciled in Wisconsin are considered residents and are subject to tax on their entire income regardless of where the income is earned. Wisconsin’s current tax rate ranges from 4.4 percent on income up to $10,750 for single filers or $14,330 for joint filers, rising in four steps to a maxi- mum of 7.65 percent on income over $236,660 for single filers or $315,460 for joint filers. Write: Wisconsin Department of Revenue, Individual Income Tax Assistance, P.O. Box 8906, Madison WI 53708-8906. Phone: (608) 266-2772. E-mail: Link through the website’s “Contact Us” tab. Website: www.dor.state.wi.us WYOMING There is no state income tax and no tax on intangibles such as bank accounts, stocks or bonds. State sales tax is 4 percent. Local taxes may increase the total to 6 percent. Write: Wyoming Department of Revenue, Herschler Building, 122 West 25th St., Cheyenne WY 82002-0110. Phone: (307) 777-5200. E-mail: dor@wyo.gov Website: revenue.state.wyo.gov STATE PENSION AND ANNUITY TAX The laws regarding the taxation of Foreign Service annuities vary greatly from state to state. In addition to those states that have no income tax or no tax on personal income, there are several states that do not tax income derived from pen-