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I have been doing a lot of researching and am honestly getting a headache from it. LOL
I have had my mind made up to move out of NY state to Winston Salem, NC. But now there is an article that I recently saw that said the "new" tax structure for NC is retiree unfriendly.
Can someone explain?
Thank you!!
It was on Yahoo news, but I also looked at a site that listed ten best and ten worst cities to retire to and NC fell into the worst. Because my income is SS, pension, and another retirement (need to look up to see what exactly it is)...... and that is where the change in tax come into play.
I also saw it on another poster's comment. I'll look for it and put it here. It's written by a Dr. Franklin.
The quote below does not mention retirement money, but I saw it in one of the other things I was reading.
NC now charges a "flat" state income tax of 5.8% - SC's top rate is 7% (and starts at a paltry $14,400 - so, effectively most SC residents pay a whopping 7%).
Sue, I'm sorry to be so vague about this. I have been going into more sites today looking for the information. I think you can see it better if you Google "NC retirement taxation" ...... I am pretty sure that is where I got the impression it would affect my income.
OK..... this is what I got from "NC retirement taxation" ---- Retirement Income Taxes: Social Security is exempt. At least $4,000 in exclusions for federal, state and local pensions (depending on dates and length of service); up to $2,000 exemption for qualified private pensions, including IRAs. Out-of-state government pensions also qualify for the $4,000 exemption. State retirees with at least 5 years of creditable service as of August 12, 1989, will be permanently exempt from state income tax on their retired/retainer pay. Be sure to investigate the Bailey decision. Taxable income also includes income derived from gaming in North Carolina. For more details on retirement income deductions, click here and on the tax form page 13 – click here.
I live in NY state and right now none of my retirement money is taxed (not a lot of it to tax).
Yahoo and a few other sites are listing NC as one of the ten states that are worst to retire in. I believe they mean how that retirement money is taxed. Apparently some changes are being made.
I don't know anything about retiree unfriendly. I've been a social work for 30+ years, so I can say I know generally the level of support people need as they get older. I think (I could be wrong) that word got around up north that NC is cheaper and warmer, so lots of people migrated. People still are. So resources have to be in place to support people. And that costs money.
Maybe you need to give yourself a little research break? Get rid of that headache for a while.
Thank you for your suggestion Sue.
The thing is I have really decided W-S is where I'm going. I don't know why I think I have to keep looking to see if I made the right choice.
It is an "over-think" problem I have and it does not serve me well.
What you said about money being needed, etc., I understand and agree with that. There are many more reasons for my desire to move to NC and I need to stop thinking about the money aspect. I am sure I can make it work and if for some crazy reason it does not, I can always find another place. But for now, NC is it.
Forgot to mention: While there in May I'm going to check out an apartment complex, The Hunt Club. I've emailed back and forth with them a few times and I'm anxious to see what they offer. The price is right, too.
The quote below does not mention retirement money, but I saw it in one of the other things I was reading.
NC now charges a "flat" state income tax of 5.8% - SC's top rate is 7% (and starts at a paltry $14,400 - so, effectively most SC residents pay a whopping 7%).
FWIW, my husband and I paid only $11 in NC state income tax for 2014. We live on Social Security, one small pension and a little interest. Our gross is around $50K, and there is a big state exemption, so I think the income tax burden is very light.
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NC tax
Research break.
