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We are still (sigh) waiting to see sales in our area so we can put our house on the market and get out of here. I would like to return to Pennsylvania or further north. Hubby thinks it is cold up there, though, so we will almost certainly move to either Lexington, KY or NC (anywhere between Asheville and Flat Rock).
I work part time. Hubby is retired. So our income consists of mostly social security, some pension, and some earned income. Investments are only what is in my 403b.
We have lived in Flat Rock before, but now I read that NC is doing major tax reform. So far I've searched the net and the city-data forums, but not found what I'm looking for. Does anybody know where I can find a quick and easy (concise, and not in legalese) description of income taxes on:
pensions
earned income &
social security income.
Also, we have a kid, so if the document addresses exemptions, and/or any special treatment of dependents, that would be helpful. Just point me to the right place, please!
Thanks, but I'm not site is up to date on the new tax law. I sort of knew what NC's laws were before, I just don't know how this tax reform is changing things?
Also, part of the point of moving would be to get out of South Carolina.
I have looked to some extent at Fort Mill, etc., but frankly, I would rather us be North Carolina residents than South Carolina residents, especially when it is time for DD to go to college. Even before that it would be nice to be a a slightly less "red" state so I could have a meaningful vote occasionally. I realize NC isn't much better for me politically, but our options are limited to places DH will accept.
NC might be a shade darker in red than SC these days. If you google you'll find tons of articles on the new tax reform. Here is one link but it's probably best to google and get different perspectives.
Have you considered getting a smaller place in both PA and NC, for seasonal residences? Assuming you are going to have an empty nest soon, you can probably get a bit more rural and a smaller place and e able to afford both, and stay in NC during late fall/winter/early spring, and then go to PA for the rest of the time?
Thanks, but I'm not site is up to date on the new tax law. I sort of knew what NC's laws were before, I just don't know how this tax reform is changing things?
This quote from an article from AARP is good: "The overhaul plan would eliminate the current three-tiered personal income tax structure and set a flat rate at 5.8 percent in 2014 and 5.75 percent in 2015. It would allow a standard deduction of $15,000 for married taxpayers filing jointly, $12,000 for heads of household and $7,500 for single or married taxpayers filing separately. Deductions previously allowed from retirement income – $4,000 for government pensions (except for public pensions protected under the Bailey court decision) and $2,000 for private plans – are eliminated. Deductions for charitable contributions would continue; however, a cap of $20,000 would apply to mortgage interest and property tax deductions." - See more at: AARP Protects Retirement Income in NC Tax Plan – AARP States
For example, we are retirees, and we were paying 7% in our bracket, after getting a $2000 deduction each. Now we would no longer get the deduction, but the rate will be 5.8%. I can't compute dollar values, but I suspect the difference will be small.
Thanks you Butterflies & Goldenage. Those links both were helpful, and not what I was coming up with in my searches. It's funny that the one link was from TV news. That was my next step in searching - to check if local newspapers and TV had commentary.
Topchief, those ideas would be great, but DH doesn't want a rural area and our kid isn't even halfway through school yet. I would miss the snow, too, not that I get any here regardless, so I guess it wouldn't be worse. But it won't work out in our situation. Thanks, though!
Last edited by fishoutofwaterinSC; 08-08-2013 at 05:24 PM..
This quote from an article from AARP is good: "The overhaul plan would eliminate the current three-tiered personal income tax structure and set a flat rate at 5.8 percent in 2014 and 5.75 percent in 2015. It would allow a standard deduction of $15,000 for married taxpayers filing jointly, $12,000 for heads of household and $7,500 for single or married taxpayers filing separately. Deductions previously allowed from retirement income – $4,000 for government pensions (except for public pensions protected under the Bailey court decision) and $2,000 for private plans – are eliminated. Deductions for charitable contributions would continue; however, a cap of $20,000 would apply to mortgage interest and property tax deductions." - See more at: AARP Protects Retirement Income in NC Tax Plan – AARP States
For example, we are retirees, and we were paying 7% in our bracket, after getting a $2000 deduction each. Now we would no longer get the deduction, but the rate will be 5.8%. I can't compute dollar values, but I suspect the difference will be small.
thanks goldenage for the link. Please keep us informed as to how the changes affect you. The changes seem to be over a two year period. I am considering a move to NC in my golden years. That will be in 2019 or so. I loved my time in SC but the wife thinks she would prefer to see mountains in the background. I hope we don't go further west than say Charlotte or Raleigh. I am anticipating a trip out there next spring to look around.
This quote from an article from AARP is good: "The overhaul plan would eliminate the current three-tiered personal income tax structure and set a flat rate at 5.8 percent in 2014 and 5.75 percent in 2015. It would allow a standard deduction of $15,000 for married taxpayers filing jointly, $12,000 for heads of household and $7,500 for single or married taxpayers filing separately. Deductions previously allowed from retirement income – $4,000 for government pensions (except for public pensions protected under the Bailey court decision) and $2,000 for private plans – are eliminated. Deductions for charitable contributions would continue; however, a cap of $20,000 would apply to mortgage interest and property tax deductions." - See more at: AARP Protects Retirement Income in NC Tax Plan – AARP States
For example, we are retirees, and we were paying 7% in our bracket, after getting a $2000 deduction each. Now we would no longer get the deduction, but the rate will be 5.8%. I can't compute dollar values, but I suspect the difference will be small.
"The legislation approved would also expand the sales tax to cover service warranties and amusements including movies, and would apply fully to manufactured housing. The 3 percent franchise tax on electricity and natural gas would be eliminated and replaced with a 7 percent general sales tax , effectively a 4 percent rate hike in monthly bills."
So, the sales tax for the state is now 7%? I thought it was 4.25% previously with counties adding more. If the general state sales tax is 7%, then Buncombe county may increase?
In Buncombe county, AVL, the sales taxes I previously researched earlier this year were as follows:
4.25% on groceries
2.25% on presc drugs
2.25% on non-presc drugs
10.5% on prepared food
7% clothing/other goods
Did any of these change in the latest legislation?
Also Georgia eliminated taxes on all retirement income starting in 2012.
So, I guess that's three states surrounding NC where retirement income is protected. And man, if there is ever a time in life when taxes will kill you, it's in retirement.
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If you google you'll find tons of articles on the new tax reform. Here is one link but it's probably best to google and get different perspectives. 
