The Foreign Service Journal, February 2010

elsewhere and spends no more than 30 days of the tax year in West Virginia. However, non-resident domiciliaries are required to file a return on Form IT-140 for all income derived fromWest Virginia sources. The tax rate rises in four steps from $150 plus 4 percent of income over $5,000 for single filers and $300 plus 4 percent of income over $10,000 for joint filers, to $1,387.50 plus 6.5 percent of in- come over $30,000 for single filers and $2,775 plus 6.5 percent of income over $60,000 for joint filers. Write: Depart- ment of Tax and Revenue, Taxpayer Serv- ices Division, P.O. Box 3784, Charleston WV 25337-3784. Phone: toll-free 1 (800) 982-8297, or (304) 558-3333. E-mail: taxwvtaxaid@wv.gov Web site: www.wvtax.gov 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 4.6 percent on income up to $9,700 for single filers or $12,930 for joint filers, to a maximumof 6.75 percent on income over $145,460 for single filers or $193,950 for joint filers. Write:WisconsinDepartment of Revenue, Individual Income Tax Assis- tance, P.O. Box 59, Madison WI 53785- 0001. Phone: (608) 266-2772. E-mail: income@revenue.wi.gov Web site: www.dor.state.wi.us WYOMING: There is no state income tax and no tax on intangibles such as bank accounts, stocks or bonds. Write:Wyom- ing Department of Revenue, Herschler Building, 122West 25th St., CheyenneWY 82002-0110. Phone: (307) 777-7961. E-mail: DirectorOfRevenue@wy.gov Web site: revenue.state.wy.us State Pension & Annuity Tax The laws regarding the taxation of For- eign Service annuities vary greatly from state to state. In addition to those states that have no income tax or no tax on per- sonal income, there are several states that do not tax income derived from pensions and annuities. Idaho taxes Foreign Serv- ice annuities while exempting certain cat- egories of Civil Service employees. Several Web sites provide more information on individual state taxes for retirees, but the Retirement Living Information Center at www.retirementliving.com/RLtaxes.html is one of the more comprehensive. ALABAMA: Social Security and federal pensions are not taxable. The combined state, county and city sales tax rates aver- age from 7 to 11 percent. ALASKA: No personal income tax. Some municipalities levy sales, property and/or use taxes. ARIZONA: Up to $2,500 of U.S. gov- ernment pension income may be ex- cluded for each taxpayer. There is also a $2,100 exemption for each taxpayer age 65 or over. Arizona does not tax Social Se- curity. Arizona state sales and use tax is 5.6 percent with additions depending on county and/or city. ARKANSAS: The first $6,000 of in- come from any retirement plan or IRA is exempt. Social Security is not taxed. There is no estate or inheritance tax. State sales tax is 6 percent; the local addition may be up to 1.5 percent. CALIFORNIA: Fully taxable. The sales and use tax rate varies from 7.25 percent (the statewide rate) to 9.75 percent in some areas. COLORADO: Up to $24,000 of pension income is exempt if individual is age 65 or over. Up to $20,000 is exempt if age 55 to 64. State sales tax is 2.9 percent with ad- ditions up to 5 percent in some jurisdic- tions CONNECTICUT: Fully taxable for resi- dents. Statewide sales tax is 6 percent. No local additions. DELAWARE: Pension exclusions per person: $2,000 is exempt under age 60; $12,500 for age 60 or over. There is an ad- ditional standard deduction of $2,500 for age 65 or over if you do not itemize. So- cial Security income is excluded from tax- able income. Delaware does not impose a sales tax. DISTRICT OF COLUMBIA: Pension or annuity exclusion of $3,000 is applicable if 62 years or older. Social Security is ex- cluded from taxable income. Sales tax is 6 percent, with higher rates for some com- modities. FLORIDA: There is no personal in- come, inheritance or gift tax. Florida re- pealed the “intangibles tax” in 2007. Florida imposes a state sales tax and a use tax of 6 percent. Counties impose further taxes ranging from 0.5 to 1.5 percent. GEORGIA: $35,000 of retirement in- come is excluded for those who are 62 years or older, or totally disabled. Sales tax is 4 percent statewide, with additions of up to 5 percent depending on jurisdic- tion. HAWAII: Pension and annuity distri- butions from a government pension plan are not taxed inHawaii. Social Security is not taxed. Hawaii charges a general excise tax of 4 percent instead of sales tax. IDAHO: If the individual is age 65 or older, or age 62 and disabled, Civil Serv- ice Retirement System (and under pres- ent Idaho law, only CSRS) pensions qualify for a deduction in 2009 of up to $26,220 for a single return and up to $39,330 for a joint return. Up to $26,220 may be deducted by the unmarried sur- vivor of the annuitant. The deduction is not available if married filing separately; nor do Foreign Service Retirement and Disability System, Federal Employees’ Retirement System or Foreign Service Pension System pensions qualify for this deduction. The deduction is reduced dollar for dollar by Social Security bene- fits. Social Security itself is not taxed. Idaho state sales tax is 6 percent. ILLINOIS: Illinois does not tax U.S. government pensions or Social Security. Sales tax is 6.25 percent to 8 percent, de- pending on local jurisdiction. INDIANA: If the individual is over age 62, the Adjusted Gross Incomemay be re- duced by the first $2,000 of any pension, reduced dollar for dollar by Social Secu- rity benefits. There is also a $1,000 ex- emption if over 65, or $1,500 if Federal Adjusted Gross Income is less than $40,000. There is no pension exclusion for survivor annuitants of federal annuities. Social Security is not taxed in Indiana. Both sales tax and use tax in Indiana are 7 percent. IOWA: Generally taxable. However, for 2009 and later tax years, a married couple 70 F O R E I G N S E R V I C E J O U R N A L / F E B R U A R Y 2 0 1 0