Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: FlipWilson
Re California “thinking” about taxing pensions after retiree moves out of state - just “California Dreaming,”

On Jan. 10, 1996, Congress enacted the Pension Source Tax Act of 1996 (P.L. 104-94). This law specifically stipulates that, “No State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State.” While the Source Tax law still allows individual states to define residency on their own terms, it prohibits any state from taxing non-residents for pensions earned within the state.

30 posted on 10/06/2020 11:39:04 AM PDT by PsyCon
[ Post Reply | Private Reply | To 15 | View Replies ]


To: PsyCon
On Jan. 10, 1996, Congress enacted the Pension Source Tax Act of 1996 (P.L. 104-94). This law specifically stipulates that, “No State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State.”

True but remember it is only a 'law', so any subsequent Congress has the right to change it. Believe me, those over-extended Pension Funds are gasping for a rewrite of this 'error'. As a tax preparer in Florida, I have made many recommendations for clients to move their 'tax home' to Florida (no personal income tax). Illinois is probably the US State that would like a change the most!

38 posted on 10/06/2020 12:07:03 PM PDT by SES1066 (2020, VOTE your principles, VOTE your history, VOTE FOR ALL AMERICANS, VOTE colorblind!)
[ Post Reply | Private Reply | To 30 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson