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 71 Aresident of SouthCarolinawho is 65years or older may claim a $15,000 deduction against any type of income ($30,000 if both spouses are over 65), butmust reduce this figurebyany retirement deductionclaimed. Social Security is not taxed. SOUTH DAKOTA: No personal in- come tax. TENNESSEE: Social Security, annuities andTSPare subject topersonal income tax. Certain interest/dividend income is taxed at 6 percent if over $2,500 (married filing jointly). However, those over 65 have $16,200 exempted for a single filer and $27,000 for joint filers. TEXAS: No personal income tax. UTAH: Individuals under age 65 may take a $4,800 deduction. However, the deduction is reduced by $.50 for every $1 that Federal Adjusted Gross Income exceeds $44,600 (married filing jointly) or $34,600 (single). Those over age 65 may exempt up to $7,500 for each indi- vidual. However, the exemption is reduced $.50 for every $1 that the total income exceeds $62,000 (married filing jointly and both over 65) or $40,000 (sin- gle). VERMONT: U.S. government pensions and annuities are fully taxable. VIRGINIA: Individuals who were over age 65 on Jan. 1, 2004, can take a $12,000 deduction; those age 62 or 63 on Jan. 1, 2004, can take a $6,000 deduction. Those who reached 62 after Jan. 1, 2004, cannot claim any deduction until they reach 65. For thosewho reached65 after Jan. 1, 2004, the $12,000 deduction is reduced by one dollar for each dollar their AGI exceeds $50,000 for single, and $75,000 for mar- ried, taxpayers. All taxpayers over 65 receive an additional personal exemption of $800. WASHINGTON: No personal income tax. WEST VIRGINIA: Up to $8,000 of income received from any source is exempt if 65years or older. Under 65, there is a $2,000 pension exclusion. WISCONSIN: Pensions and annuities are fully taxable. Those age 65or overmay take two personal deductions totaling $1,000. However, benefits received from a federal retirement systemaccount estab- lishedbeforeDec. 31, 1963, arenot taxable. Nomore than50percent of Social Security is taxed; after Jan 1, 2008, Social Security will not be taxed. WYOMING: No personal income tax. A F S A N E W S The AFSA Tax Guide is also available online at www.afsa.org/news.