The Foreign Service Journal, January-February 2017

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2017 79 to file an income tax return. All federal pensions are tax- able, but single taxpayers who are over 65 or disabled may exclude some income if Federal Adjusted Gross Income is under $33,700 and nontaxable Social Security is under $9,600. For a couple, the limits are $42,000 for Adjusted Gross Income and $12,000 for nontaxable Social Security. Statewide sales and use tax is 6.875 percent; some local additions may increase the total to 9.53 percent. MI SS I SS I PP I Social Security, qualified retirement income from fed- eral, state and private retire- ment systems, and income from IRAs are exempt from Mississippi tax. There is an additional exemption of $1,500 on other income if over 65. Statewide sales tax is 7 percent. MI SSOUR I 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 $36,442 for each spouse. The maximum private pension deduction is $6,000. You may also deduct 100 percent of Social Secu- rity income if over age 62 and Federal Adjusted Gross Income is less than the lim- its above. Sales tax is 4.225 percent; local additions may add another 2 percent. MONTANA There is a $3,980 pension income exclusion if Federal Adjusted Gross Income is less than $33,190. Those over 65 can exempt an additional $800 of interest income for single taxpayers and $1,600 for married joint filers. Social Security is sub- ject 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 tax- able. Social Security is tax- able. 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 jurisdic- tion. NEW HAMPSH I RE No personal income tax. There is no inheritance tax. 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 J ERSEY Pensions and annuities from civilian government service are subject to state income tax, with exemptions for those aged 62 or older or totally and permanently dis- abled. However, see this link for the distinction between