Q: I live in Pennsylvania and I am interested in knowing the state and federal tax rate that will be applied to my federal pension from the U.S. Post Office.
A: To find out how your retirement annuity will be taxed by the federal government, read IRS publication 721, Tax Guide to U.S. Civil Service Retirement Benefits, available at www.irs.gov/pub/irs-pdf/p721.pdf. To find out how Pennsylvania will tax those benefits, call or visit your state office of taxation.
