ny pensions taxed (Bailey: credit, how much, income)

[rretire]

Does anyone know how to find out any information on how much a NY pension will be taxed if moved to NC? My father does not pay any state tax on his Long Island Railroad pension. I'm looking for any info if they move to NC from Ny and how much it would cost them.

[mm34b]

Originally Posted by rretire

Does anyone know how to find out any information on how much a NY pension will be taxed if moved to NC? My father does not pay any state tax on his Long Island Railroad pension. I'm looking for any info if they move to NC from Ny and how much it would cost them.

Some NC state, Federal and Military pensions are exempt from state income tax, but I doubt any retired NY State employees are.

http://www.dor.state.nc.us/taxes/individual/

[hapaleeretired]

Call the NC Department of Revenue and ask if any or all will be exempt. I was under the impression that railroad retiremtent were federal. If so, your pension will not be taxed. Good luck.

[dbay]

I know my county pension will be taxed in NC, a real down side in that respect.

[mm34b]

Originally Posted by hapaleeretired

Call the NC Department of Revenue and ask if any or all will be exempt. I was under the impression that railroad retiremtent were federal. If so, your pension will not be taxed. Good luck.

Some federal pensions are taxable while others are not.

Bailey Decision

As a result of the North Carolina Supreme Court's decision in Bailey v. State of North Carolina, North Carolina may not tax certain retirement benefits received by retirees of the State of North Carolina and its local government or by the United States government retirees (including military) for each retirement plan if the retiree has five or more years of creditable service as of August 12, 1989.

More - http://www.dor.state.nc.us/taxes/ind.../benefits.html