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New Member
posted Jun 4, 2019 7:53:38 PM

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.

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?

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Level 9
Jun 4, 2019 7:53:41 PM

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.

5 Replies
Level 9
Jun 4, 2019 7:53:41 PM

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.

New Member
Jun 4, 2019 7:53:42 PM

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?

Level 9
Jun 4, 2019 7:53:43 PM

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

New Member
Jun 4, 2019 7:53:45 PM

Very helpful! Thanks.

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

Level 9
Jun 4, 2019 7:53:46 PM

If you do not mind, post it new!  Thanks