The Foreign Service Journal, January-February 2014

80 JANUARY-FEBRUARY 2014 | THE FOREIGN SERVICE JOURNAL AFSA NEWS 2013 AFSA TAX GUIDE MICHIGAN In 2012 and subsequent years, pension benefits included in Adjusted Gross Income from a private pension system or an IRA 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. If born after 1952, not eligible for any exemption until reaching age 67. Full details at: www.michigan.gov/documents/taxes/Tax_ Change_Summaries_-_Retirement_Exemptions_359799_7. pdf. Social Security is exempt. Michigan has no city, local, or county sales tax. The state sales tax rate is 6 percent. MINNESOTA 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 would not be required to file an income tax return. All federal pensions are taxable, but single taxpayers who are over 65 or disabled may exclude some income if Fed- eral 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 non- taxable Social Security. Statewide sales and use tax is 6.875 percent; some local additions may increase the total to 9.53 per cent. MISSISSIPPI Social Security and qualified retirement income from federal, state and private retirement systems are exempt from Missis- sippi tax. There is an additional exemption of $1,500 on other income if over 65. Statewide sales tax is 7 percent. MISSOURI Public pension income may be deducted if Missouri Adjusted Gross Income is less than $100,000 when married filing jointly or $85,000 for single filers, up to a limit of $35,234 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 $3,900 pension income exclusion if Federal Adjusted Gross Income is less than $32,480. Those over 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. Montana 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 HAMPSHIRE No personal income tax. The inheritance tax was repealed in 2003. There is a 5-percent tax on interest/dividend income over $2,400 for singles ($4,800 married filing jointly). A $1,200 exemption is available for those 65 or over. No general sales tax. NEW JERSEY Pensions and annuities from civilian government service are subject to state income tax, with exemptions for those