The Foreign Service Journal, February 2004

FEBRUARY 2004 • AFSA NEWS 11 TENNESSEE : Salaries andwages arenot subject to Tennessee income tax, but Tennessee imposes a 6 percent tax on div- idends andcertain types of interest income received by Tennessee residents. Write: Department of Revenue, Andrew Jackson StateOfficeBuilding,Nashville, TN37242. Phone: (615) 253-0600. Web site: www.state.tn.us/revenue TEXAS : Nostate income tax. Write:Tax Policy Division, Comptroller of Public Accounts, P.O. Box13528, Capitol Station, Austin,TX78711-3528. Phone:1(800)252- 5555. E-mail: tax.help@cpa.state.tx.us Web site: www.window.state.tx.us UTAH : Individuals domiciled in Utah are considered residents and are subject to Utah state tax. Utah requires that all fed- eral adjustedgross income reportedon the federalreturnbereportedonthestatereturn regardlessof the taxpayer’sphysical presence in the state. Utah’s highest tax rate is 7per- cent. Write: Utah State Tax Commission, TaxpayerServicesDivision, 210North1950 West, Salt Lake City, UT 84134. Phone: (801) 297-2200 or 1(800) 662-4335. E-mail: taxmaster@utah.gov Web site: http://tax.utah.gov VERMONT : Individuals domiciled in Vermont are considered residents and are subject to taxontheir entire income regard- less of their physical presence in the state. Tax rates should be obtained from the tax tables in the Vermont income tax booklet or from the Vermont Web site. Write: Vermont Department of Taxes, Taxpayer ServicesDivision, PavilionOfficeBuilding, Montpelier,VT05609-1401. Phone: (802) 828-2865. E-mail: vttaxdept@tax.state.vt.us Web site: www.state.vt.us/tax VIRGINIA : Individuals domiciled in Virginia are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Individuals domiciled elsewhere are also considered residents for tax purpos- es for the portion of any calendar year in which they are physically present in the state for 183 days ormore. Individual tax rates are: 2 percent if taxable income (TI) is less than $3,000; $60 plus 3 percent of excess over $3,000 if TI is between $3,000 and $5,000; $120 plus 5 percent of excess over $5,000 if TI is between $5,000 and $17,000; and $720 plus 5.75 percent of TI over $17,000. Write: Department of Taxation, Ofice of Customer Services, P.O. Box 1115, Richmond, VA 23218-1115. Phone (804) 367-8031. E-mail: tax-indivrtn@state.va.us Web site: www.tax.state.va.us WASHINGTON : No state income tax. No tax on intangibles such as bank accounts, stocks and bonds. Address: Washington Department of Revenue, General Administration Building, P.O. Box 47450, Olympia, WA 98504-7450. Phone: (360) 786-6100or 1(800) 647-7706. Web site: www.dor.wa.gov WESTVIRGINIA : Notax liability forout- of-state income if the individual hasnoper- manent residence in West Virginia, has a permanent residence elsewhere, andspends nomorethan30daysofthetaxyearinWest Virginia. Filinga return isnot required, but is recommended to preserve domicile sta- tus. Filing is required on formIT-140-NR for all income derived fromWest Virginia sources. Tax rates range from3 to 6.5 per- cent depending on income and filing sta- tus. Write: The Department of Tax and Revenue, Taxpayer ServicesDivision, P.O. Box 3784, Charleston, WV 25337-3784. Phone: (304) 558-3333or 1(800) 982-8297. Web site: www.state.wv.us/taxdiv WISCONSIN : Individuals domiciled in Wisconsinare consideredresidents andare subject to taxontheir entire income regard- less of where the income is earned. Wisconsin’s current taxrate ranges from4.6 to 6.75 percent depending on income and filing status. Write:WisconsinDepartment of Revenue, Customer Service and EducationBureau,P.O.Box8949,Madison, WI 53708-8949. Phone: (608) 266-2772. Web site: www.dor.state.wi.us WYOMING : No state income tax. No tax on intangibles such as bank accounts, stocks or bonds. Write: Wyoming DepartmentofRevenue,HerschlerBuilding, 122 West 25th St., Cheyenne, WY 82002- 0110. Phone: (307) 777-7961. E-mail: dor@state.wy.us Web site: revenue.state.wy.us STATE PENSION& ANNUITY TAX The laws regarding the taxation of ForeignService annuities vary greatly from state tostate. Inaddition to those states that have no income tax or no tax on personal income, there are several states that do not tax income derived from pensions and annuities. IdahotaxesForeignServiceannu- ities while exempting certain portions of those of the Civil Service. ALABAMA : Fullexemption.Federalpen- sions are not taxable. ALASKA : No personal income tax. ARIZONA : Up to $2,500 of U.S. gov- ernment pension income may be exclud- ed for each taxpayer. ARKANSAS : Up to $6,000 exempt. CALIFORNIA : Fully taxable. COLORADO : Up to $24,000 exempt if age65orover. Up to$20,000exempt if age 55 to 64. CONNECTICUT : Fully taxable for resi- dents. DELAWARE : Two exclusions: 1) Up to $2,000exempt if earned income is less than $2,500 and Adjusted Gross Income is less than $10,000; if married and filing jointly, up to$4,000exempt if earned income is less than$5,000andAGI isunder$20,000. This is applicable for those 60 years or older or totally disabled. 2) If under age 60, the amount of the exclusion is $2,000 or the amount of the pension (whichever is less) and for age 60 or older, the amount of the exclusion is $12,500 or the amount of the pension and eligible retirement income (ERI)whichever is less. The combined total of pension and ERI may not exceed $12,500 per person age 60 or older. DISTRICT OF COLUMBIA : Pension or annuity exclusion of $3,000 if 62 years or older. FLORIDA : No personal income, inher- itance, or gift tax, but Florida has an “Intangibles Tax.” GEORGIA : Up to $14,500 exempt for those 62years or older or permanently and totally disabled for the 2002 tax year, rising to $15,000 for the 2003 tax year. HAWAII : Pension and annuity distrib- utions fromagovernment pensionplanare not taxed in Hawaii. IDAHO : Foreign Service retirees whose annuities are paid from the FSPS are fully taxed on their pensions. Those persons retired under the Civil Service Retirement Act are exempt up to $20,892 for a single returnandupto$31,338 if filing jointly. Up to$20,892 is exempt for theunmarriedsur- vivor of annuitant. Must be 65 years or older, or 62 years or older and disabled. Amount reduced dollar for dollar by Social Security benefits. ILLINOIS : Full exemption; U.S. gov- ernment pensions are not taxed. INDIANA : Up to $2,000 exemption for most 62 or older, reduced dollar for dollar by Social Security benefits. IOWA : Fully taxable. However, there is a pension/retirement income exclusion of up to $6,000 for individuals and up to $12,000 formarried taxpayerswhoaredis- abled or are 55 years of age or older, a sur- viving spouseor a survivorhavingan insur- able interest in an individual who would have qualified for the exclusion in the tax