The Foreign Service Journal, January-February 2019

86 JANUARY-FEBRUARY 2019 | THE FOREIGN SERVICE JOURNAL AFSA NEWS MAINE Recipients of a government- sponsored pension or annuity who are filing singly may deduct up to $10,000 ($20,000 for married filing jointly) on income that is included in their Federal Adjusted Gross Income, reduced by all Social Security and railroad benefits. For those aged 65 and over, there is an additional standard deduction of $1,600 (filing singly) or $2,600 (married fil- ing jointly). General sales tax is now 5.5 percent; 8 percent on meals and liquor. MARYLAND Those over 65 or perma- nently disabled, or who have a spouse who is permanently disabled, may under certain conditions be eligible for Maryland’s maximum pen- sion exclusion of $30,600 in tax year 2018. Also, all individuals 65 years or older are entitled to an extra $1,000 personal exemption in addition to the regular $3,200 personal exemption available to all taxpayers. Social Security is excluded from taxable income. See the worksheet and instructions in the Maryland Resident Tax Booklet. General sales tax is 6 percent; 9 percent on liquor. MASSACHUSETTS Federal pensions and Social Security are excluded from Massachusetts gross income. Each taxpayer over age 65 is allowed an additional $700 exemption on other income. Sales tax is 6.25 percent. Income and $12,000 for nontaxable Social Security. Statewide sales and use tax is 6.875 percent; a few cities and counties also add a sales tax, which can be as high as 8.375 percent. MISSISSIPPI 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. MISSOURI Up to 65 percent of pub- lic 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 limits above. Sales tax is 4.225 percent; local sales and use tax additions may raise the total to 10.1 percent. MICHIGAN Federal and state/local gov- ernment pensions may be partially exempt, based on the year you were born and the source of the pension. (a) If born before 1946, private pension or IRA benefits included in AGI are partially exempt; public pen- sions are exempt. (b) If born after Jan. 1, 1946 and before Dec. 31, 1952, the exemption for public and private pensions is limited to $20,000 for singles and $40,000 for married filers. (c) If born after 1952, not eligible for any exemption until reaching age 67. Social Security is excluded from taxable income. Full details at: https://www.michigan. gov/taxes/0,4676,7-238-- 459647--,00.html. Michigan’s state sales tax rate is 6 percent. There are no city, local or county sales taxes. MINNESOTA Social Security income is taxed by Minnesota to the same extent it is on your federal return. If your only income is Social Security, you are not required to file an income tax return. All federal pensions are taxable, but sin- gle taxpayers who are over 65 or disabled may exclude some income if Federal Adjusted Gross Income is under $33,700 and nontax- able Social Security is under $9,600. For a couple who are both over 65, the limits are $42,000 for Adjusted Gross MONTANA There is a $4,110 pension income exclusion if Federal Adjusted Gross Income is less than $34,260. Those over 65 can exempt an additional $800 of interest income for single taxpayers and $1,600 for married joint filers. For taxpayers with an AGI income under $25,000 (single filers) or $32,000 (joint filers), all Social Security retirement income is deductible. For taxpayers above those limits but below $34,000 (single filers) or $44,000 (joint filers), half of Social Security retirement income is deductible. Above those second-level limits, 15 percent is deductible. Mon- tana has no general sales tax, but tax is levied on the sale of various commodities. NEBRASKA U.S. government pensions and annuities are fully taxable. Social Security is taxable. 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, depend- ing on local jurisdiction. NEW HAMPSHIRE No personal income tax and no inheritance tax. There is a 5 percent tax on interest/ dividend income over $2,400 for singles ($4,800 mar- ried filing jointly). A $1,200 exemption is available for those 65 or over. No general sales tax.