Q. Does retiring under a Voluntary Early Retirement Authority meet Pennsylvania’s requirement that the “taxpayer must have been eligible to retire by meeting the age or service conditions of the retirement plan” for a pension to be tax-exempt? I was 53 years old when I retired and had 33 years of service under CSRS. A. That’s a matter between you and the Commonwealth of Pennsylvania.
Browsing: tax exemptions
Q. I find the Michigan tax code for CSRS Postal Service retirees confusing and murky. I believe I am exempt but find no section that spells it out. A. According to our information, the state of Michigan exempts the total amount of civil service annuities.
Q. I have more than 24 years’ federal service, am 65 and recently was offered a $20,000 buyout. When I received the printout for the buyout, it showed I had two exemptions not considered or computed for the federal tax and I was charged the full 25 percent federal tax, $5,000. The normal state tax with two exemptions, along with Social Security and Medicare, were taken out at the usual rate with two exemptions. Should my two exemptions have been figured into and deducted from the deduction? A. The 25 percent federal tax deduction is automatic and is taken from…
Q. I have more than 24 years’ federal service, am 65 and recently was offered a $20,000 buyout. When I received the printout for the buyout, it showed I had two exemptions not considered or computed for the federal tax and I was charged the full 25 percent federal tax, $5,000. The normal state tax with two exemptions, along with Social Security and Medicare, were taken out at the usual rate with two exemptions. Should my two exemptions have been figured into and deducted from the deduction? A. The 25 percent federal tax deduction is automatic and is taken from…