The Foreign Service Journal, January-February 2017

76 JANUARY-FEBRUARY 2017 | THE FOREIGN SERVICE JOURNAL AFSA NEWS WASH I NGTON 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 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 1 (800) 647-7706. Website: www.dor.wa.gov Email: Link through the website’s “Contact Us” tab. WEST V I RG I N I A 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, The Revenue Center, 1001 Lee St. E., Charleston WV 25337-3784. Phone: toll-free 1 (800) 982-8297, or (304) 558-3333. Website: www.wvtax.gov Email: TaxHelp@WV.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 pensions and annuities. Idaho taxes Foreign Service annuities while exempting certain categories of Civil Service employees. 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. WI SCONS I N 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 2016 tax rate rises in four steps from 4 percent on income up to $11,150 for single filers or $14,820 for joint filers to a maximum of 7.65 percent on income over $244,750 for single filers or $326,330 for joint filers. Write: Wisconsin Department of Revenue, Individual Income Tax Assistance, P.O. Box 59, Madison WI 53708-0001. Phone: (608) 266-2486. Website: www.revenue.wi.gov Email: Through the “Contact Us” link on the website. WYOMI NG 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. Website: http://revenue.wyo.gov/ Email: dor@wyo.gov n 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 8.65 percent. See also www.revenue.alabama.gov/ taxpayerassist/retire.pdf. ALASKA No personal income tax. Most municipalities levy sales and/or use taxes of between 2 and 7 percent and/or a property tax. If over 65, you may be able to claim an exemption. AR I ZONA Up to $2,500 of U.S. govern- ment pension income may be excluded for each taxpayer. There is also a $2,100 exemp- tion for each taxpayer age 65 or over. Social Security is excluded from taxable income. Sales and use tax is 5.6 percent, with additions depending on the county and/ or city. ARKANSAS The first $6,000 of income from any retirement plan or IRA is exempt (to a maximum of $6,000 overall). Social Security is excluded from tax- able income. There is no estate