Question about Wisconsin income tax (Dakota, York: home, retirement, moving)

[us2indaup]

I don't know where to go to look for information on this, every search I do just leads me around in circles. Is it true that Wisconsin will stop taxing pensions and retirement income as of 2008? Where can I find out the details on this?

[dreamhunter65]

Sent a PM for you to look at.

[McCallister]

I do not know for sure, but maybe this article may help??

Individual Income Tax - Retired Persons Frequently Asked Questions - Wisconsin Department of Revenue

[wiemergal]

I found this verbage in one of the State of Wisconsin Tax documentation. Also below is the link for the document I copied it out of.

A portion of social security benefits that is taxable for federal purposes. Up to 85% of social security
benefits are subject to federal tax, but Wisconsin limits the amount taxed to 50% of benefits. For taxable
years beginning in 2008 or after, all federally taxable social security benefits are allowed as a subtraction

http://www.revenue.wi.gov/ra/07sumrpt.pdf

[Drover]

That SS benefits are taxable at all is infuriating. But I digress.

[susancruzs]

I need to check on this as I get closer to collecting. I thought I read somewhere that Wisconsin wasn't going to tax social security as of 2008??? Maybe I was dreaming or wishful thinking because I was moving here! :-)

[dreamhunter65]

Originally Posted by susancruzs

I need to check on this as I get closer to collecting. I thought I read somewhere that Wisconsin wasn't going to tax social security as of 2008??? Maybe I was dreaming or wishful thinking because I was moving here! :-)

Susan look at link wiemergal gave..Alot of pages but some good info there. Hope helps and if anything changes in it sure she will post that as she gets the updates quite frequently.

[susancruzs]

Thanks, I checked the link and it is great!

[twin.spin]

Is it an election year? Probably thats because somebody is going to unleash higher taxes someplace else.
State-Local Tax Burdens, Calendar Year 2005
How tax-friendly is your state?

Local and state taxes can have a big impact on your take-home pay.
source[CNN MONEY]

U.S. average---------10.10%
1 Maine ------- 13.00%
2 New York ---- 12.00%
3 Hawaii ------- 11.50%
4 Rhode Island - 11.40%
5 Wisconsin ---- 11.40%
6 Vermont ------11.10%
7 Ohio ----------11.00%
8 Nebraska ----- 10.90%
9 Utah ---------- 10.90%
10 Minnesota ---- 10.70%

Effective State and Local Tax Burdens by
State and Rank Projected for 2007

the tax burden table are derived from the U.S. Commerce Department's Census Bureau and the Bureau of Economic Analysis (BEA)

1 Vermont 14.10%
2 Maine 14.00%
3 New York 13.80%
4 Rhode Island 12.70%
5 Ohio 12.40%
6 Hawaii 12.40%
7 Wisconsin 12.30%
8Connecticut 12.20%
9 Nebraska 11.90%
10 New Jersey 11.60%

(Wisconsin went from #5 (11.4%) to [projected] #7 (12.3%) --- to some that's lowering your taxes.) <- (my observation)

The remaining 15 states with broad-based income taxes tax Social Security to some extent:

• Minnesota, Nebraska, North Dakota, Rhode Island, Vermont tax Social Security income to the extent it is taxed by the federal government.
• Connecticut, Iowa, Kansas, Missouri, Montana and Wisconsin tax Social Security income above an income floor. Iowa will gradually phase out its Social Security tax levy from 2008 through 2014. Missouri will phase out its Social Security tax levy by 2010.
• Colorado, New Mexico and Utah require that federally untaxed Social Security benefits be added back to federal AGI to calculate the base against which their broad age-determined income exclusions apply.

And to think at the time of the revolution, the taxation rate was @1-2%,

[KateDaum]

I am not shocked that New England leads the list. It was so much more expensive to live there. Our dollar goes a lot further here then out east.