Reuters: Why Are States Leaving Billions in Retiree Income on the Table?

Illinois exempts all retirement income from state taxes – Social Security, private and public pensions, and annuities. We’re leaving $2 billion on the table annually, according to the state’s estimates. And we’re hardly alone: 36 states that have an income tax allow some exemption for private or public pension benefits, and 32 exempt all Social Security benefits from tax, according to the Institute on Taxation and Economic Policy (ITEP). States currently considering wider income tax exemptions for seniors include Rhode Island and Maryland.With the April 15 tax day just around the corner, it’s a timely moment to ask: What are these politicians thinking?

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