The Foreign Service Journal, February 2007

F E B R U A R Y 2 0 0 7 / F OR E I GN S E R V I C E J OU R N A L 69 GEORGIA: $25,000 retirement income excluded for those62yearsorolder, or total- ly disabled. This will increase to $30,000 for Tax Year 2007 and $35,000 for 2008. HAWAII: Pension and annuity distri- butions from a government pension plan are not taxed in Hawaii. IDAHO: If the individual is age 65 or older, or age 62 anddisabled, U.S. govern- ment pensions qualify for a deduction in 2006 of up to $24,646 for a single return and up to $36,954 for a joint return. Up to $24,646 may be deducted by the unmarried survivor of the annuitant. The deduction is not available if married filing separately. Amount is reduced dollar for dollar by Social Security benefits. ILLINOIS: U.S. government pensions are not taxed. INDIANA: If the individual is over age 62, the AGI may be reduced by the first $2,000 of any pension, reduced dollar for dollar by Social Security benefits. Also, $1,000 exemption if over 65, or $1,500 if federal AGI less than$40,000. Nopension exclusion for survivor annuitants of feder- al annuities. IOWA: Fully taxable. Over age 55 there is a pension/retirement income exclusion of up to $6,000 for single, head of house- holdor qualifyingwidower filers andup to $12,000 formarried filing jointly. The same income tax rates apply toannuities as other incomes. KANSAS: U.S. government pensions are not taxed. KENTUCKY: Government pensions attributable to service before Jan. 1, 1998, are not taxed. The portion of annuity income attributable to service afterDec. 31, 1997, is subject to taxat the appropriate rate; the pension exclusion of up to $41,110 is unchanged for 2006. LOUISIANA: Federal retirement ben- efits are exempt from Louisiana state income tax. There is an exemption of $6,000 of other annual retirement income received by any person aged 65 or over. MAINE: Recipients of a government- sponsoredpensionor annuitymay deduct up to $6,000 on income that is included in their federal AGI, reduced by all Social Security and railroad benefits. For those age 65 andover, there is anadditional stan- dard deduction of $1,250 (single), $1,000 (married filing singly), and $2,000 (mar- ried filing jointly). MARYLAND: Those over 65or perma- nently disabled, orwhohave a spousewho is permanentlydisabled,mayunder certain conditions be eligible forMaryland’smax- imum pension exclusion of $22,600 for 2006. Also, all individuals 65 years or older are entitled to an extra $1,000 personal exemption in addition to the regular $2,400 personal exemption available to all taxpayers. Social Security is not taxed. See the worksheet and instructions for A F S A N E W S