Federal tax treatment of retirement and pension depends on who paid for the cost, from where you are retiring, any disability,etc. Retirement Taxes
Federal tax treatment of retirement and pension depends on who paid for the cost, from where you are retiring, any disability,etc.
State Tax Exemptions
Private Pension: Your pension or annuity payments may be fully taxable or partially taxable depending on who contributed to the cost. If your employer contributed all of the cost, the payment is fully taxable. If you contributed to the cost, then it is partially taxed under either the General Rule or the Simplified Method.
Pension Topics
Publication 575
Partial
Federal Pension: Publication 721 covers the tax treatment of federal retirement benefits, primarily those paid under the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS).
Partial
Military Pension: Taxable as Pension
The ordinary military retirement pay based on age or length of service is taxable as a pension. But the military disability retirement pay are not taxable. Publication 3, Armed Forces' Tax Guide.
Social Security: Partial
Whether social security benefits are taxable depends on your total income and marital status. Part of your social security will be taxable if your total income is more than the base amount for your filing status (32K for married filing joint, 25K for Single, $0 for married filing separate.)
Pension Age Restriction: Yes. If you receive pension or annuity payments before age 59 1/2, you may be subject to an additional 10% tax on early distributions.
Pension Income Restriction: Yes. If your total income is more than the base amount for the filing status, you are subject to partial taxes.
Disability Income: VA disability benefits are not taxable.