Not sure if I'm supposed to file a return with California as well as Connecticut. I receive teacher pensions from both states. I reside in CT.

[jstinoiii]

The FAQs on the California State Teachers Retirement Site says that California is not allowed to tax nonresidents. But I receive a pension from CA and CT. Is there state tax on the CA income?

[MaryK1 · Accepted solution]

You only pay tax on your retirement income in your state of residence regardless of who pays it or where the deferred compensation was actually earned.  Public Law 104-95 (P.L. 104-95)  prevents any state from taxing income from certain pensions and deferred compensation plans paid to individuals who are not residents or domiciliaries of that state.

[jstinoiii]

Okay, so I don't fill out a CA tax form. But do I include the CA pension numbers in the CT form? I see that I'm allowed a 25% "discount" on the taxable amount of the pension income. Does that mean 25% of the total of the two pensions, or just the actual CT amount?

[MaryK1]

Correct- CT only and you do get the 25% on both pensions.

[jstinoiii]

Very helpful! Thanks.

I have another question on a different matter. Should I ask it here, or start new?

[MaryK1]

If you do not mind, post it new!  Thanks