What would you like to do?
State: roads, state parks, police departments. Federal : national parks , war . They also pay for law enforcement (police, sheriff and deputies), fire departments, education… (teacher salaries, books, schools, etc.), various government and public services, to name a few.
There are different kinds of retirement pay. Some, such as Illinois, exempt all retirement pay from taxes. Others exempt Social Security benefits, and/or military pensions, an…d/or public pensions, and/or private pensions, or nothing at all. So there is no one-size-fits-all answer to your question.. Instead, here is a good resource for you to explore: http://www.retirementliving.com/RLtaxes.html.
There are no special exceptions for teachers that I can find. There are some exclusions that might benefit retired people in general. Social Security and Railroad Retireme…nt benefits are exempt. A total and permanent disability pension for people under 65 is exempt. New Jersey also has an exclusion for a portion of your pension income if you are 62 or over. Refer to the following page for details: http://www.state.nj.us/treasury/taxation/njit7.shtml The above page also lists a special exclusion for taxpayers 62 or over who are not covered by Social Security or Railroad Retirement. All other income is taxable just like for any other person.
Retirees are not exempt from paying Alabama state tax. However, Alabama does not tax Social Security, Federal retirement benefits, Alabama state retirement benefits, and per…iodic distributions from private defined benefit pension plans. A "defined benefit" pension plan is a traditional pension plan where the employer guarantees a certain benefit when you retire. The does not include a 401k type of plan which is a "defined contribution" plan where you take your chances with your own investments. Distributions from IRA, 401k, etc plans are taxable in much the same manner as they are on your federal return. If you made deductible contributions to an IRA plan before 1982, you may be eligible for an additional adjustment. All other types of income are taxable the same for retirees as for anyone else.
Yes, I have to pay federal taxes on my NC state retirement but not state income tax. Not all of my social security is taxable, depending on my adjusted income. The amoun…t of social security that is subject to taxation is on a sliding scale. A more complete answer can be found at: http://www.fool.com/taxes/2002/taxes020315.htm
No. At almost all levels one government exempts another...nd of course, governments are not businesses, they would be much closer to a Not For Profit organization, like …the United Way or such, and wouldn't have any taxable income.
Yes it is very possible that would have to pay some state income taxes when you report all of your gross worldwide income on the income tax return for the year.
Yes you do the taxable amount of the distribution will be added to all of your other taxable income on your 1040 income tax return and taxed at your marginal tax rate.
For 2009 Illinois has a Personal state income tax flat rate range of 3 % of federal adjusted gross income The above information comes from the RETIREMENTLIVING com website
A church has to Pay State Tax.
You have to pay them both every year and can file for an extenstion but have to do for both seperatly.
Even though the Amish do not collect Social Security, unemployment, or welfare benefits, they are still required to pay property, income, and sales tax. If they stay in thei…r own community and own their own business, they are not required to pay social security taxes.
yes, as of June 2104