Idaho and Colorado

[Corduroy Frog]

A friend of mine (actually a family member) lives in California, and wants to move. He says he is one of fewer and fewer taxpayers who is having to pay for more and more non-taxpayers who have overrun California.

He is considering two possibilities, Idaho and Colorado. I don't know much to tell him about the tax structure except they DO have income taxes (unlike NV and WA). Specifically, since he is a retired military colonel, he is asking me how and to what extent ID and CO tax military retirement.

Any comments from some of you in western states?? Thanks, Corduroy Frog.

[outwest]

Idaho..

On the military retirement, there is a deduction for military retirement reduced by the social security benefits received: per the form 39 instructions:

Servicemen: Retirement benefits paid by the United States to
a retired member of the U.S. military or the unremarried widow
of such member if the recipient is age 65 or older, or disabled
and age 62 or older.
The amount deducted must be reduced by retirement benefits
paid under the Federal Social Security Act and the Tier I benefits
paid under the Federal Railroad Retirement Act received by you
and your spouse.

The maximum amounts that may be deducted for 2008 are:
Married filing jointly:
• age 65 or older .................................................. ......... $39,330
• age 62 or older and disabled ...................................... $39,330
Single:
• age 65 or older .................................................. ......... $26,220
• age 62 or older and disabled ...................................... $26,220

Also for general information:

http://tax.idaho.gov/pdf/EBR00220_newcomers_10-03-06.pdf

don't know Colorado

Like CA we are a community property state.

[Roland Slugg]

Nevada

Nevada taxes income as follows:

Military retirement ... 0%
Wages ... 0%
Interest income ... 0%
Dividends ... 0%
Business income ... 0%
Rental income ... 0%
Capital gains ... 0%
Other income ... 0%

Also: Tax on corporate income ... 0%

Washington, as you indicated, also has no income tax, and neither does Wyoming. Oregon has an income tax but no sales tax.

One other point: The property tax on my home in Reno is less than half as much as it would be if I bought a house for the same price in California ... Prop. 13 notwithstanding.

[Ricardo]

Google - -

Colorado Department of Revenue.com - answer must be there.

Regards - Ricardo

[S T]

More than State Income Tax

Your client might want to look at the overall State Taxes, i.e., state income tax, real estate property tax, personal property tax, Sales tax, estate tax issues, etc

This site usually has a good overview, but I am not sure if it is up to date. http://www.retirementliving.com/RLtaxes.html

Sandy

[OtisMozzetti]

the website

Colorado Department of Revenue.com - answer must be there.

Regards - Ricardo

When I searched for Colorado income tax, I came up with www.colorado.gov, a different URL than that shown in TTB 17-3.

After wondering why our questioner didn't look it up himself, I was curious and saw that Colorado allows an exclusion of $20,000 for military pensions of those under age 65, and $24,000 for those 65 and older. For the necessary details go to their website, and look for "FYI Income #21".

[Corduroy Frog]

Thanks

Thank you to everyone for responding. I think these responses will enable me to explain what I need to.

He was a full colonel, so this is a major item for him. I agree with Sandy that the entire spectrum should be investigated, but most of his questions have gravitated to military retirement income.

[Maribeth]

Thank you to everyone for responding. I think these responses will enable me to explain what I need to.

He was a full colonel, so this is a major item for him. I agree with Sandy that the entire spectrum should be investigated, but most of his questions have gravitated to military retirement income.

And on a side note . . . . . tell you client, if he moves to Idaho, to make sure he gets his license plates changed the day he gets here. Don't drive around with California plates.

(sorry to have to write this, but it is true)

Maribeth

[outwest]

I presume..

you are noting the difference in registration fees and the savings available.

[PIGLEE]

Along with State Income Tax, one also needs to also look at, Property Tax, Sales Tax, Car Tags, etc. I remember long ago I had a map that showed the entire tax burden per individual per state. It was amazing, because some of the states with no income tax, where on the high side on the total tax burden. The number one reason to move is my opinion is do I want to move there???