March 11, 2019

Crains Chicago: It’s Time to Tax Retirement Income, Illinois

media mention

On federal returns, income tax is paid on retirement resources that have not been previously taxed—defined-benefit pensions, 401(k)s, and traditional individual retirement accounts. Higher-income seniors also pay taxes on Social Security benefits. Among the states, policy varies. According to the Institute on Taxation & Economic Policy, 11 states tax some portion of Social Security benefits, 33 tax pension income, although many have exemptions that protect lower-income, public-sector workers and military personnel. Seven states have no personal income tax.Read more