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Old 04-13-2015, 07:12 AM
 
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My husband retired from MA this past year. His pension is state tax exempt in MA as he worked for a municipality. But we DO have to pay NC State tax on his MA state retirement income even though we earned nothing here? Is that correct? Any quick insight would be helpful...thanks in advance?
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Old 04-13-2015, 07:20 AM
 
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There used to be an exemption for some pension income that was repealed in 2014. See GS 105-134.6.
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Old 04-13-2015, 09:01 AM
 
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I assume you moved to NC sometime in 2014, in which case you'll only be responsible for reporting that portion of income received after you established residency here.
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Old 04-14-2015, 02:42 AM
 
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NC is a not a retirement friendly state when it comes to taxation. With very few exceptions, pensions are taxed as normal income. Yes, you will pay taxes on that MA pension as soon as you become residents of NC. You can offset it, if you pay tax to MA on it, but that doesn't sound like the case here.
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Old 04-14-2015, 02:51 AM
 
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Thank you all for your input! I am finding it very helpful in clarifying things.
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Old 04-16-2015, 11:08 AM
 
Location: Central NY
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Default Taxation in NC

Quote:
Originally Posted by WaldoKitty View Post
NC is a not a retirement friendly state when it comes to taxation. With very few exceptions, pensions are taxed as normal income. Yes, you will pay taxes on that MA pension as soon as you become residents of NC. You can offset it, if you pay tax to MA on it, but that doesn't sound like the case here.
I am planning to relocate to NC in September 2015. After reading your comment, in particular NC taxes pension, I wonder if there is a limit on the amount a person gets from pension every year? My yearly pension amounts to under $5,000/year. Would they tax that, too?
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Old 04-16-2015, 03:35 PM
 
Location: Raleigh, NC
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Quote:
Originally Posted by NYgal2NC View Post
I am planning to relocate to NC in September 2015. After reading your comment, in particular NC taxes pension, I wonder if there is a limit on the amount a person gets from pension every year? My yearly pension amounts to under $5,000/year. Would they tax that, too?
It would count towards taxable income, yes. Basically I don't think it is treated any differently from other income anymore.

For further followup, consult the NC Dept of Revenue web site.
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Old 04-17-2015, 02:02 AM
 
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Quote:
Originally Posted by NYgal2NC View Post
I am planning to relocate to NC in September 2015. After reading your comment, in particular NC taxes pension, I wonder if there is a limit on the amount a person gets from pension every year? My yearly pension amounts to under $5,000/year. Would they tax that, too?
Yes. However if this is your only taxable income, then you won't pay any state income tax as the NC standard deduction/exemption is more than this.
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Old 04-17-2015, 01:12 PM
 
Location: Central NY
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Default Taxes

Unbelievable. I live in NY state and have not had to pay any tax on any of my retirement. No tax on SS, pension, or annuity. I'm wondering if it's a case of it making under or over a particular limit.

Darn it. Will be disappointed.
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