The Foreign Service Journal, January-February 2015

70 JANUARY FEBRUARY 2015 | THE FOREIGN SERVICE JOURNAL is age 65 or over. Up to $20,000 is exempt if the individual is age 55 to 64. State sales tax is 2.9 percent; local additions can increase the total to as much as 9.9 percent. CONNECTICUT 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 filers. Statewide sales tax is 6.35 percent. No local additions. DELAWARE 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. Dela- ware does not impose a sales tax. DISTRICT OF COLUMBIA 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 5.75 percent, with higher rates for some commodities (liquor, meals, etc.). FLORIDA There is no personal income, inheritance, gift tax or tax on intangible property. The state sales and use tax is 6 percent. There are additional county sales taxes which could make the combined rate as high as 9.5 percent. GEORGIA $35,000 of retirement income is excluded for those who are 62 years or older or totally disabled. Up to $65,000 of retire- ment income is excludable for taxpayers who are 65 or older. Social Security is excluded from taxable income. Sales tax is 4 percent statewide, with additions of up to 3 percent depend- ing on jurisdiction. HAWAI I Pension and annuity distributions from a government pen- sion plan are not taxed in Hawaii. Social Security is not taxed. Hawaii charges a general excise tax of 4 percent instead of sales tax. IDAHO 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 2014 of up to $31,704 for a single return and up to $47,556 for a joint return. Federal Employees’ Retirement System or Foreign Service Pension System pensions do not qualify for this deduction. The deduction is reduced dollar for dollar by Social Security benefits. Social Security itself is not taxed. Idaho state sales tax is 6 percent; some local jurisdictions add as much as another 3 percent. ILLINOIS Illinois does not tax U.S. government pensions or Social Secu- rity. State sales tax is 6.25 percent. Local additions can raise sales tax to as much as 10.5 percent in some jurisdictions. INDIANA If the individual is over age 62, the Adjusted Gross Income may be reduced by the first $2,000 of any pension, reduced dollar for dollar by Social Security benefits. There is also a 2014 AFSA TAX GUIDE