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deellington
New Member

Point of question, I'm retired from a state retirement system other then the state I reside. Do I have to file for out of state income?

 
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HelenaC
New Member

Point of question, I'm retired from a state retirement system other then the state I reside. Do I have to file for out of state income?

No, pensions may be taxable in your resident state but they are not taxable to the state that you used to live and work in.

On Jan. 10, 1996, Congress enacted the Pension Source Tax Act of 1996 (P.L. 104-94). This law specifically stipulates that, "No State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State." While the Source Tax law still allows individual states to define residency on their own terms, it prohibits any state from taxing non-residents for pensions earned within the state. If you earn a pension in Vermont, for instance, then retire to New York, Vermont may not tax your pension income.

See Limitation on State Income Taxation of Certain Pension Income for additional information

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HelenaC
New Member

Point of question, I'm retired from a state retirement system other then the state I reside. Do I have to file for out of state income?

No, pensions may be taxable in your resident state but they are not taxable to the state that you used to live and work in.

On Jan. 10, 1996, Congress enacted the Pension Source Tax Act of 1996 (P.L. 104-94). This law specifically stipulates that, "No State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State." While the Source Tax law still allows individual states to define residency on their own terms, it prohibits any state from taxing non-residents for pensions earned within the state. If you earn a pension in Vermont, for instance, then retire to New York, Vermont may not tax your pension income.

See Limitation on State Income Taxation of Certain Pension Income for additional information

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