The Foreign Service Journal, January-February 2015

THE FOREIGN SERVICE JOURNAL | JANUARY FEBRUARY 2015 69 AFSA NEWS as bank accounts, stocks and bonds. Residents may deduct Washington sales tax on their federal tax returns if they item- ize deductions. State tax rate is 6.5 percent and local addi- tions can increase that to 9.5 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. Email: 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 (800) 982-8297, or (304) 558-3333. Email: TaxWVTaxAid@wv.gov Website: www.wvtax.gov WISCONSIN Individuals domiciled inWisconsin 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 percent on income up to $10,910 for single filers or $14,540 for joint filers, rising in four steps to a maximum of 7.65 percent on income over $240,190 for single filers or $329,250 for joint filers. Write: Wisconsin Department of Revenue, Individual Income Tax Assistance, P.O. Box 8906, Madison WI 53708-8906. Phone: (608) 266-2772. Email: DORIncome@revenue.wi.gov 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 jurisdictions may add another 4 percent. Write: Wyoming Department of Revenue, Herschler Building, 122 West 25th St., Cheyenne WY 82002-0110. Phone: (307) 777-5200. Email: dor@wyo.gov Website: http://revenue. wyo.gov STATE PENSION AND ANNUITYTAX 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- sions and annuities. Idaho taxes Foreign Service annuities while exempting certain categories of Civil Service employ- ees. Several websites provide more information on individual state taxes for retirees, but the Retirement Living Information Center at www.retirementliving.com/taxes-by-state is one of the more comprehensive and is recommended for further information. ALABAMA Social Security and U.S. government pensions are not taxable. The combined state, county and city general sales and use tax rates range from 7 percent to as much as 10 percent. See also www.revenue.alabama.gov/taxpayerassist/retire.pdf. ALASKA No personal income tax. Most municipalities levy sales or use taxes of between 2 and 7 percent and/or a property tax. ARIZONA Up to $2,500 of U.S. government pension income may be excluded for each taxpayer. There is also a $2,100 exemption for each taxpayer age 65 or over. Arizona does not tax Social Security. Arizona state sales and use tax is 5.6 percent, with additions depending on the county and city. ARKANSAS The first $6,000 of income from any retirement plan or IRA is exempt (to a maximum of $6,000 overall). Social Secu- rity is not taxed. There is no estate or inheritance tax. State sales and use tax is 6 percent; city and county taxes may add another 3 percent. CALIFORNIA Pensions and annuities are fully taxable. Social Security is not taxed. The sales and use tax rate varies from 7.25 percent (the statewide rate) to 10.5 percent in some areas. COLORADO Up to $24,000 of pension income is exempt if an individual