retirement income and annuity

is retirement income and annuity taxable for state of Colorado taxes?

MayaD
Expert Alumni

Retirement tax questions

Colorado law excludes from Colorado state income tax total pension income up to $20,000 per year per person for those retirees age 55 through 64, or $24,000 for those retirees age 65 and over. 

For more information visit  CO state Website 

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Room42
New Member

Retirement tax questions

Is my AT&T Annuity Pension eligible for a deduction from Michigan income tax?

 

DaveF1006
Expert Alumni

Retirement tax questions

it depends on when you were born.  Here is a summary on how the State of Michigan  deducts pensions. Keep in mind, your AT&T pension is from a private source, Pay attention to anything referring to private source and the year the oldest spouse was born, if you are filing jointly.

 

For joint filers, the age of the oldest spouse determines the age category.

Pension recipients born before 1946:

  • All qualifying benefits from public sources are exempt.
  • Qualifying benefits from private sources may be deducted up to $51,570 for single/married filing separate filers and $103,140 for married filing joint for tax year 2019.
  • Any qualifying private pension payment in excess of the limits mentioned above is taxable.

Pension recipients born during the period 1946 through 1952:

  • For recipients filing single or married filing separate, the first $20,000 of their qualifying pension (public/private) is subtractable from Michigan taxable income until they reach age 67.
  • For filing joint, the first $40,000 of their qualifying pension (public/private) is subtractable from Michigan taxable income until they reach age 67.
  • Recipients born in years 1946 – 1952 who have reached age 67, or with an older spouse born in years 1946 – 1952 who has reached age 67, will be eligible for the Michigan standard deduction against all income instead of deducting pension or retirement benefits for tax year 2019. The standard deduction is $20,000 for taxpayers filing single or married filing separate and $40,000 for taxpayers filing jointly.
  • Filers who receive qualifying pension benefits from employment with a governmental agency exempt from the Social Security Act see “Benefits from Employment that was Exempt from Social Security” below.

Pension recipients born after 1952:

  • All private and public pension and annuity benefits are fully taxable and may not be deducted from Michigan taxable income.
  • Filers who receive qualifying pension benefits from employment with a governmental agency exempt from the Social Security Act see “Benefits from Employment that was Exempt from Social Security” below.
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