The Foreign Service Journal, February 2007

68 F OR E I GN S E R V I C E J OU R N A L / F E B R U A R Y 2 0 0 7 Virginia are considered residents and are subject to taxon their entire income regard- less of their physical presence in the state. Individuals domiciled elsewhere are also considered residents for tax purposes for the portion of any calendar year in which they are physically present in the state for 183 days or more. These individuals file using Form 760. In addition, Virginia requires part-year residents to fileForm763 if their Virginia Adjusted Gross Income (which includes any federal salarypaiddur- ing time they are residing in Virginia) exceeds $7,000 for single filers, $14,000 for married filing jointly or $7,000 formarried filing separately. Individual tax rates are: 2percent if tax- able income is less than $3,000; $60 plus 3 percent of excess over $3,000 if taxable income is between$3,000 and$5,000; $120 plus 5 percent of excess over $5,000 if tax- able income is between$5,000and$17,000; and $720 plus 5.75 percent of taxable income is over $17,000. Write: Virginia Department of Taxation, Office of Custo- mer Services, P.O. Box 1115, Richmond, VA 23218-1115. Phone: (804) 367-8031. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.tax.virginia.gov WASHINGTON: There is no state income tax, andno taxon intangibles such as bank accounts, stocks and bonds. Sales tax ranges from 7 to 8.9 percent, depend- ing on jurisdiction. Address:Washington State Department of Revenue, Taxpayer Services, P.O. Box 47478, Olympia, WA 98504-7478. Phone: (360) 786-6100or toll- free 1 (800) 647-7706. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.dor.wa.gov WEST VIRGINIA: There is no tax lia- bility for out-of-state income if the individ- ual has no permanent residence in West Virginia, has a permanent residence else- where and spends no more than 30 days of the tax year in West Virginia. Filing a return is not required, but is recommend- ed to preserve domicile status. Filing is required on Form IT-140-NR for all incomederived fromWestVirginia sources. Tax rates range from $150 plus 4 percent of income over $5,000 for single filers, ris- ing in four steps to $2,775 plus 6.5 percent of income over $60,000 for joint filers. Write: Department of Tax and Revenue, Taxpayer ServicesDivision, P.O. Box3784, Charleston,WV 25337-3784. Phone: (304) 558-3333, or toll-free 1 (800) 982-8297. E-mail: wvtaxaid@tax.state.wv.us Web site: www.state.wv.us/taxdiv WISCONSIN: Individuals domiciled inWisconsin are considered residents and are subject to tax on their entire income regardless of where the income is earned. Wisconsin’s current tax rate ranges from 4.6percent on incomeup to$8,840 for sin- gle filers, to amaximumof $11,224.97plus 6.75 percent of income over $176,770 for joint filers. Write:WisconsinDepartment of Revenue, Individual Income TaxAssis- tance, P.O. Box 59, Madison, WI 53785- 0001. Phone: (608) 266-2772. E-mail: Use Web site “contact us” page. Web site: www.dor.state.wi.us WYOMING: There is no state income tax, andno taxon intangibles such as bank accounts, stocks or bonds. Sales tax ranges between 4 and 6 percent, depending on jurisdiction. Write:WyomingDepartment of Revenue, Herschler Building, 122West 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 Foreign Service annuities vary greatly from state to state. In addition to those states that have no income taxor no taxon personal income, there are several states that do not tax income derived frompensions and annuities. Idaho taxes ForeignService annuitieswhile exemptingcertaincategories of Civil Service employees. The National Active and Retired Federal Employees AssociationWeb site alsoprovides detailed informationonother state taxes for feder- al annuitants. Go to: www.narfe.org/departments/hq/guest/ articles.cfm?ID=732 ALABAMA: Social Security and feder- al pensions 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. There is also a $2,100 exemption for each taxpayer aged 65 or over. ARKANSAS: Up to $6,000 of income from any retirement plan is exempt. CALIFORNIA: Fully taxable. COLORADO: Up to $24,000 exempt if age 65 or over. Up to $20,000 exempt if age 55 to 64. CONNECTICUT: Fully taxable for res- idents. DELAWARE: Two exclusions: 1) If 60 or over, or totally disabled: Up to $2,000 exempt if earned income is less than$2,500 and Adjusted Gross Income is less than $10,000; figures doubled ifmarried and fil- ing jointly. 2) If under age 60, the exclu- sion is $2,000 or the amount of the pen- sion (whichever is less); for age 60or older, the exclusion is $12,500 or the amount of thepensionandeligible retirement income, whichever is less. The combined total of pension and ERI may not exceed $12,500 per person age 60 or older. Social Security income is exempt. DISTRICT OF COLUMBIA: Pensionor annuity exclusion of $3,000 if 62 years or older. Additional $1,370 exemption for all residents. Social Securityexcluded fromtax- able income. FLORIDA: Nopersonal income, inher- itance, or gift tax, but for Tax Year 2006 Florida will still have an “intangibles tax.” A F S A N E W S