The Foreign Service Journal, January-February 2019

88 JANUARY-FEBRUARY 2019 | THE FOREIGN SERVICE JOURNAL PUERTO RICO The first $11,000 of income received from a federal pension can be excluded for individuals under 60. For those over 60, the exclusion is $15,000. If the individual receives more than one federal pension, the exclu- sion applies to each pension or annuity separately. Social Security is excluded from taxable income. RHODE ISLAND U.S. government pensions and annuities are fully tax- able. However, effective the 2017 tax year, taxpayers eli- gible for Social Security may take a $15,000 exemption on their retirement income. This applies to single taxpayers with FAGIs of up to $80,000 and to joint taxpayers up to $100,000 that are otherwise qualified. Social Security is taxed to the extent it is federally taxed. Sales tax is 7 percent; meals and bever- ages, 8 percent. SOUTH CAROLINA Individuals under age 65 can claim a $3,000 deduction on qualified retirement income; those age 65 or over may claim a $15,000 deduc- tion on qualified retirement income ($30,000 if both spouses are over 65) but must reduce this figure by any other retirement deduc- tion claimed. Social Security is excluded from taxable income. Sales tax is 6 percent plus up to 3 percent in some counties. Residents age 85 and over pay 5 percent. SOUTH DAKOTA No personal income tax or inheritance tax. State sales and use tax is 4.5 percent; municipalities may add up to an additional 2.75 percent. Residents who are age 66 and older and have a yearly income of under $10,250 (single) or in a household where the total income was under $13,250 are eligible for a sales tax or a property tax refund. TENNESSEE Social Security, pension income and income from IRAs and TSP are not subject to personal income tax. In 2018, most interest and dividend income is taxed at 3 percent if over $1,250 (single filers) or $2,500 (married filing jointly). However, for tax year 2015 and subsequently, those over 65 with total income from all sources of less than $37,000 for a single filer and $68,000 for joint filers are completely exempt from all taxes on income. State sales tax is 5 percent on food; 7 percent on other goods, with between 1.5 and 2.75 percent added, depend- ing on jurisdiction. TEXAS No personal income tax or inheritance tax. State sales tax is 6.25 percent. Local options can raise the rate to 8.25 percent. UTAH Utah has a flat tax rate of 5 percent of all income. For taxpayers over 65 there is a retirement tax credit of $450 for single filers and $900 for AFSA NEWS joint filers. This is reduced by 2.5 percent of income exceed- ing $25,000 for single filers and $32,000 for joint filers. See the state website for details. State sales tax ranges from 5.95 percent to 8.60 percent, depending on local jurisdiction. VERMONT U.S. government pensions and annuities are fully tax- able. Social Security is taxed to the extent it is federally taxed. State general sales tax is 6 percent; local option taxes may raise the total to 7 percent (higher on some com- modities). VIRGINIA Individuals over age 65 can take a $12,000 deduction. The maximum $12,000 deduction 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 is excluded from taxable income. 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. Retire- ment income is not taxed. State sales tax is 6.5 percent; rates are updated quarterly. Local taxes may increase the total to 10.4 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 includable in Fed- eral 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. Social Security is excluded from taxable income. Those age 65 or over may take two personal deductions totaling $950. Benefits received from a federal retirement system account established before Dec. 31, 1963, are not taxable. Those over 65 and with a FAGI of less than $15,000 (single filers) or $30,000 (joint filers) may exclude $5,000 of income from federal retirement systems or IRAs. Those over 65 may take an additional personal deduc- tion of $250. State sales tax is 5 percent; most counties charge an extra 1.5 percent. WYOMING No personal income tax. State sales tax is 4 percent. Local taxes may add up to 2 percent on sales and 4 percent on lodging. n