LindaS5247
Expert Alumni

Retirement tax questions

Yes, postal service workers are considered civil servants.  

 

They participate in  one of two federal government retirement plans:

 

The Civil Service Retirement System (CSRS), which provides benefits for most workers hired before 1984.

 

The Federal Employee Retirement System (FERS), which covers all workers hired after 1984.


Federal government retirement benefits are not taxable in Alabama.

 

Income that is not reported to Alabama includes:

  • Retirement benefits
  • Unemployment
  • Life Insurance (proceeds received because of a person's death)


Please click here  for the listing of income types exempt from Alabama taxation.


 

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