The Foreign Service Journal, February 2013

56 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS such as bank accounts, stocks and bonds. Residents may deduct Washington sales tax on their federal tax returns if they itemize deduc- tions. Write: Washington State Department of Revenue, Taxpayer Services, P.O. Box 47478, Olympia, WA 98504- 7478. Phone: 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 liability for out-of-state income if the individual has no permanent residence in West Virginia, has a permanent residence 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 from West Virginia sources. Tax rates rise in four steps from 4 percent of taxable income over $5,000 for single filers and over $10,000 for joint fil- ers, to 6.5 percent of taxable income over $30,000 for single filers over $60,000 for joint filers. Write: Department of Tax and Revenue, Taxpayer Services 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 or through the “Contact Us” page on the Web site. Web site: www.wvtax.gov WISCONSIN Individuals domiciled in Wisconsin are considered residents and are subject to tax on their entire income regardless of where the income is earned. Wiscon- sin’s current tax rate ranges from 4.6 percent on income up to $10,570 for single filers or $14,090 for joint filers, rising in four steps to a maximum of 7.75 percent on income over $232,660 for single filers or $310,210 for joint filers. Write: Wisconsin Depart- ment of Revenue, Individual Income Tax Assistance, P.O. Box 8906, Madison, WI 53708-8906. Phone: (608) 266-2486. 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: Wyoming Depart- ment of Revenue, Herschler Building, 122 West 25th St., Cheyenne, WY 82002-0110. Phone: (307) 777-7961. E-mail: DirectorOfRevenue@ wy.gov Web site: http://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 tax or no tax on personal income, there are several states that do not tax income derived from pen- sions and annuities. Idaho taxes Foreign Service annui- ties while exempting certain categories 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/ taxes-by-state i s one of the more comprehensive. ALABAMA Social Security and U.S. government pensions are not taxable. The combined state, county and city general sales and use tax rates range from 7 percent to as much as 12 percent. ALASKA No personal income tax. Most municipalities levy sales and/or use taxes of between 2 and 7 percent and/or a property tax. ARIZONA Up to $2,500 of U.S. govern- ment pension income may be excluded for each taxpayer. There is also a $2,100 exemption for each taxpayer age 65 or over. Arizona does not tax Social Security. Ari- zona state sales and use tax is 5.6 percent with additions depending on county and/ or city. ARKANSAS The first $6,000 of income from any retirement plan or IRA is exempt. Social Security is not taxed. There is no estate or inheritance tax. State sales and use tax is 6 percent; city and county taxes may add another 6.5 percent. CALIFORNIA Pensions and annuities are fully taxable. Social Security is not taxed. The sales and use tax rate varies from 7.25 percent (the statewide rate) to 10.50 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; local additions can 2012 TAX GUIDE