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Old 02-19-2016, 02:20 PM
 
1 posts, read 831 times
Reputation: 11

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I worked 30 yrs as a government employee of NJ. During that time I paid into my pension. When I received my pay bi- weekly check they deducted for my pension. It was not taxed federal but was taxed NJ state going into my retirement. If I stayed in NJ when I retired I would only pay Federal tax on my pension payments. I would be exempt from NJ tax until I received the amount of money that I contributed, then I would start paying NJ income tax because it was already taxed. Now I'm in South Carolina and I'm told that I must pay tax again on the same money I already paid tax on. Does anyone have insight into this? It doesn't seem right.
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Old 02-20-2016, 08:31 AM
 
723 posts, read 1,153,697 times
Reputation: 510
New Jersey tax laws are not applicable in South Carolina. You have no recourse. Your mutually exclusive options are to pay the tax or move back to New Jersey.
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Old 02-20-2016, 09:26 AM
 
Location: Rock Hill, SC
158 posts, read 181,500 times
Reputation: 99
Wow, that effin sucks!
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Old 02-20-2016, 10:02 AM
 
Location: Wake Forest, NC
2,444 posts, read 2,883,068 times
Reputation: 2247
Well thre is this:South Carolina a top state for retirees due to tax breaks, says Kiplinger - Post and Courier
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Old 02-20-2016, 06:21 PM
 
723 posts, read 1,153,697 times
Reputation: 510
BigRedBath is right regarding the generally favorable tax policies in the state - up to a point. However, the OP still will be liable for tax on the income from the NJ retirement system after allowable exemptions. If the OP is 65 years of age or older, up to the first $15,000 of income may be exempt. People up to age 65 can deduct up to $3000 of qualified pension income.

If you own your home in South Carolina and have resided in it more than a year, be sure to register with your local tax authority for the homestead tax exemption. That exemption excludes the first $50,000 fair market value of primary residence from all property taxes. It also might ease the pain of having to pay taxes on some of that retirement income.

See http://aging.sc.gov/SiteCollectionDo...tizensInSC.pdf
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