The Foreign Service Journal, January-February 2019

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2019 85 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 Government pension exclu- sions per person: $2,000 is exempt under age 60; $12,500 if age 60 or over. There is an additional stan- dard deduction of $2,500 if age 65 or over if you do not itemize. Social Security is excluded from taxable income. Delaware does not impose a sales tax. DISTRICT OF COLUMBIA Pensions and annuities are fully taxed for residents. 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. ILLINOIS Illinois does not tax U.S. government pensions, TSP distributions or Social Secu- rity. State sales tax is 6.25 percent. Local additions can raise sales tax to 11 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 pen- sion, reduced dollar for dollar by Social Security benefits. There is also a $1,000 exemp- tion if over 65, or $1,500 if Federal Adjusted Gross Income is less than $40,000. There is no pension exclu- sion for survivor annuitants of federal annuities. Social Security is excluded from taxable income. Sales tax and use tax is 7 percent. IOWA Generally taxable. Amarried couple with an income for the year of less than $32,000 may file for an exemption, if at least one spouse or the head of household is 65 years or older on Dec. 31, and single persons who are 65 years or older on Dec. 31 may file for an exemption if their income is $25,000 or less. Social Security is excluded from taxable income. Statewide sales tax is 6 percent; local taxes can add up to another 7 percent. GEORGIA Up to $35,000 of retirement income may be exclud- able for those aged 62 or older or totally disabled. Up to $65,000 of retirement income may be 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 depending on jurisdiction. HAWAII Pension and annuity distri- butions from a government pension plan are not taxed in Hawaii. Social Security is excluded from taxable income. Hawaii charges a general excise tax of 4 per- cent 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 qualify for a deduction in 2018 of a maxi- mum of $32,244 for a single return and up to $48,366 for a joint return. Federal Employees Retirement Sys- tem and Foreign Service Pen- sion 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. KANSAS U.S. government pensions are not taxed. There is an extra deduction of $850 if over 65. Social Security is exempt if Federal Adjusted Gross Income is under $75,000. State sales tax is 6.5 percent, with additions of between 1 and 4 percent depending on jurisdiction. KENTUCKY Government pension income is exempt if retired before Jan. 1, 1998. If retired after Dec. 31, 1997, pension/annu- ity income up to $41,110 remains excludable for 2018. Social Security is excluded from taxable income. Sales and use tax is 6 percent statewide, with no local sales or use taxes. LOUISIANA Federal retirement ben- efits are exempt from state income tax. There is an exemption of $6,000 of other annual retirement income received by any person age 65 or over. Married filing jointly may exclude $12,000. Social Security is excluded from taxable income. State sales tax is 5 percent with local additions up to a possi- ble total of 10.75 percent. Use tax is 8 percent regardless of the purchaser’s location.