Does your state tax pensions of retirees who have moved to another?

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  • LCP
    Senior Member
    • Dec 2005
    • 432

    #1

    Does your state tax pensions of retirees who have moved to another?

    I seem to recall my state (Michigan) trying to do this a few years ago.

    Even though much of a retiree's pension is excluded anyway, they wanted to tax those who received more than the excludable amount and were now living where its warm.

    Do any states reach out and tax former residents on pensions???
  • Larmil
    Senior Member
    • Dec 2006
    • 621

    #2
    Originally posted by LCP
    I seem to recall my state (Michigan) trying to do this a few years ago.

    Even though much of a retiree's pension is excluded anyway, they wanted to tax those who received more than the excludable amount and were now living where its warm.

    Do any states reach out and tax former residents on pensions???
    The states no longer can tax pensions of non-residents thanks to a federal law.

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    • Chief
      Senior Member
      • Jun 2005
      • 799

      #3
      state pensions

      Originally posted by LCP
      I seem to recall my state (Michigan) trying to do this a few years ago.

      Even though much of a retiree's pension is excluded anyway, they wanted to tax those who received more than the excludable amount and were now living where its warm.

      Do any states reach out and tax former residents on pensions???
      I am a Michigan retiree and remember that there Was a federal law that kept them from taxing the pension of retirees who moved out of state. Sorry I can't remember the citation for this law.

      Comment

      • Davc
        Senior Member
        • Dec 2006
        • 1088

        #4
        Originally posted by Larmil
        The states no longer can tax pensions of non-residents thanks to a federal law.
        Which is the primary reason California is contemplating a withdrawal from the union.

        Comment

        • Larmil
          Senior Member
          • Dec 2006
          • 621

          #5
          Originally posted by Davc
          Which is the primary reason California is contemplating a withdrawal from the union.
          I thought they did.

          Comment

          • gkaiseril
            Senior Member
            • Feb 2007
            • 567

            #6
            Prior to December 31, 1995 some states taxed retirement income from that state paid to non-residents. The recent tax law cleared up the treatment of partnership retitrement plans.

            From CA, http://www.ftb.ca.gov/forms/06_forms/06_1005.pdf ,

            Retirement Income

            Recent Federal law provisions prohibit states from taxing the retirement income of nonresidents and includes a prohibition on taxing retirement income paid by a partnership to a nonresident retired partner under any written plan, program, or arrangement in effect immediately before retirement begins. This is applicable to amounts received after December 31, 1995.

            Aslo:

            CA news release:

            Last edited by gkaiseril; 03-03-2007, 02:07 PM. Reason: CA New Release added

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