The Foreign Service Journal, January-February 2020

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2020 85 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 $36,976 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 per- cent; local sales and use tax additions may raise the total to 10.1 percent. MONTANA Montana taxes all pension and retirement income received while residing in Montana. 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 tax- payers 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. 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 JERSEY Pensions and annuities from civilian government service are subject to state income tax, with exemptions for those age 62 or older or totally and permanently disabled. However, see this link for the distinction between the “Three-Year Method” and the “General Rule Method” for contribu- tory pension plans: http:// www.state.nj.us/treasury/ taxation/njit6.shtml. For 2019, qualifying singles and heads of households may be able to exclude up to $45,000 of retirement income; those married filing jointly up to $60,000; those married filing separately up to $30,000 each. These exclusions are eliminated for New Jersey gross incomes