The Foreign Service Journal, January-February 2015

THE FOREIGN SERVICE JOURNAL | JANUARY FEBRUARY 2015 75 AFSA NEWS VIRGINIA Individuals over age 65 can take a $12,000 deduction. How- ever, this 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 The estate tax was repealed for all deaths after July 1, 2007.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 5.3 percent (4.3 percent state tax and 1 percent local tax, with an extra 0.7 percent in Northern Virginia). WASHINGTON No personal income tax. Retirement income is not taxed. 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 includ- able in Federal Adjusted Gross Income. Taxpayers 65 and older or surviving spouses of any age may exclude the first $8,000 (individual filers) or $16,000 (married filing jointly) of any retirement income. Out-of-state government pensions qualify for this exemption. State sales tax is 6 percent, with additions of between 0.5 and 1 percent in some jurisdictions. WISCONSIN Pensions and annuities are fully taxable. Those age 65 or over may take two personal deductions totaling $950. Benefits received from a federal retirement system account estab- lished before Dec. 31, 1963, are not taxable. Wisconsin does not tax Social Security benefits included in Federal Adjusted Gross Income. For tax years after 2009, those over 65 and with an FAGI of less than $15,000 (single filers) or $30,000 (joint filers) may take a $5,000 deduction on income from federal retirement systems or IRAs. State sales tax is 5 per- cent; most counties charge an extra 1.5 percent. WYOMING No personal income tax. State sales tax is 4 percent. Local taxes may add to another 4 percent. n —James Yorke, Senior Labor Management Adviser