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Anyone know anything about taxing pensions earned out of state?

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Southsideirish Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Aug-24-04 05:58 PM
Original message
Anyone know anything about taxing pensions earned out of state?
I want to move from the state where I earned my pension but my brother told me that other states will tax my poor little pittance as much as 7 % if it was earned in another state. Is this true? I believe it is already taxed in my own state - how can they hit me on it again in another one? You'd think they would be glad I was moving there alone with my spending power let along hitting me with a big tax.
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eyesroll Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Aug-24-04 06:09 PM
Response to Original message
1. In Illinois, if you have a state pension, it's not taxed by the state
However, if you move, the state you move into taxes the pension because it's just income (e.g. -- the pension gets special status in your home state, but it doesn't get any special status where you move.)

I don't think you have to pay taxes twice -- you just might lose the exemption you have in your current state of residence. However, I'm not a tax person, so you may wanna give one a call.
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Southsideirish Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Aug-24-04 06:15 PM
Response to Reply #1
2. Its a really confusing issue - I had no idea this went on. Very
discouraging. What to they want - for us all to stay home?
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