Federal retiree taxes? (Charleston, Welcome, North: sales, homes, transfer)

[marc515]

I will be retiring from the federal government next year, and am looking to retire to either Florida, North Carolina, or South Carolina.

Flordia: has no income tax, but realestate taxes are high.

North Carolina: exempts federal pensions if you have worked for the government since the 80's (don't remember the exact cut off date, but I'm grandfathered)

According to "where to Retire", South Carolina is really tax friendly to retirees, but I'm not sure if I would be better off tax wise if my pension is taxed?

I would greatly appreciate if someone could outline retiree tax benefits; are ther any provisions for federal retirees?

Oh, one other benefit to South Carolina is "I think" they get less hurricanes than Florida and NC?

Thank you......marc

[baylovers]

This info is from RETIREMENT LIVING INFORMATION CENTER - Retirement Communities and senior lifestyle data and I have been told it may be a little outdated but it gives a decent overview on the taxes. I don't see any special exemptions for Federal Pensions only military.

SOUTH CAROLINA
Sales Taxes
State Sales Tax: 6% (prescription drugs exempt); 25 counties impose an additional 1% local option sales tax; a number of counties impose a 2% sales tax. Seniors 85 and older pay 4%.
Gasoline Tax: 16.8 cents/gallon
Diesel Fuel Tax: 16.8 cents/gallon
Cigarette Tax: 7 cents/pack of 20

Personal Income Taxes
Tax Rate Range: Low - 3.0%; High - 7%; No tax on the first $2,630 of taxable income in tax year 2007.
Income Brackets: ** Lowest - $2,630; Highest - $13,150
Number of Brackets: 6
Personal Exemptions: * Single - $3,200; Married - $6,400; Dependents - $3,200
Standard Deduction: Single - $4,750; Married filing jointly - $9,500
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Retirement income is taxed. Social Security exempt. You can take this deduction for income received from any qualified retirement plan. If both spouses receive retirement income, each spouse is entitled to an individual deduction. At 65, the deduction is $15,000. The $15,000 deduction must be offset by any other retirement deduction that is claimed. A surviving spouse may continue to tackle a retirement deduction on behalf of the deceased spouse. Some taxpayers age 65 and older may not have to file a tax return if they meet certain conditions. For more information, click here.
Retired Military Pay: Retirees with 20 or more years of active duty can deduct up to $3,000 annually until age 65 and up to $10,000 per year after age 65. This deduction extends to the surviving spouse. Pension or retirement income received for time served in the National Guard or Reserve components is not taxable. Survivor benefits are taxed following federal tax rules.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
Property tax is assessed and collected by local governments. Both real and personal property are subject to tax. The market value of a legal residence and up to 5 acres of surrounding land is assessed at 4%. For homeowners 65 and older, the state's homestead exemption allows the first $50,000 of their property's fair market value to be exempt from local property taxes. South Carolina imposes a casual excise tax of 5% on the fair market value of all motor vehicles, motorcycles, boats, motors and airplanes transferred between individuals. For more information, click here.

Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is related to federal estate tax collection.

For further information, visit the South Carolina Department of Revenue site or 800-763-1295. If you are planning to move to South Carolina, this link will provide you with some helpful information.
* State allows personal exemption or standard deductions as provided in the Internal Revenue Code.

You can check for more current info here:
Individual Income Tax

Here is a site that allows you to track hurricanes by zip code or an area. It was not working at the time I posted this but it may work for you when you check it. If my memory serves me correctly the SC coast seems to be spared from many hurricanes, some say because it is on the inner portion of a geographical crescent from Georgia to N.C. But I am sure if you talk to the folks who lived through "Hugo" they will tell you that one is enough.

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[Jimrob1]

I think if you have a federal type pension and are looking for complete tax exemption on it then South Carolina will not be the state for you. If you want southern states on the east coast that do not tax that Federal Pension they are NC, Fla, Tenn. Maybe there are others in that region but those are the ones I have found researching all this. I thought SC would have been tax exempt for that particular pension but guess I was wrong. Its just a $3000 exemption until age 65 when it increases to $10,000 or so.

[Jimrob1]

I just wanted to add when reading these information type articles on retirement. They are not always written for everyone. We all have different situations in life and these articles are to general, so be wary of them. I definitely did not find SC that tax friendly for my situation, and I felt badly about that. Definitely what is tax friendly to one may not be to another person, I have found that out. I like the Charleston area and may still consider it, but I doubt Im one that is going to want to retire to a state that is going to tax my pension. I live in one now, and I don't like the tax burden on this pension at all, considering how the price of everything has gone sky high now. So consider areas carefully by your personal situation not some retirement article.

[rrufast]

Check out the SC Dept of Revenue site at Welcome to the South Carolina Department of Revenue
You should find the answers to your questions there. If I *knew* them, I would provide them here.. but I don't..

[TH0724]

Does Louisiana exempt any of the military retirement pay for Federal?