|
| Author | Topic: Delaware Tax Info |
| Bridget Touhey |
posted 7/10/09 4:34 PM
RETIREMENT INFORMATION, IRA TOPICS, PENSION EXCLUSIONS, SOCIAL SECURITY BENEFITS Q. I'm planning to move to Delaware within the next year. I am retired. I am receiving a pension and also withdrawing income from a 401K. My spouse receives social security. What personal income taxes will I be required to pay as a resident of Delaware? I also would like information on real estate property taxes. A. As a resident of Delaware, the amount of your pension and 401K income that is taxable for federal purposes is also taxable in Delaware. However, person's 60 years of age or older are entitled to a pension exclusion of up to $12,500 or the amount of the pension and eligible retirement income (whichever is less). Eligible retirement income includes dividends, interest, capital gains, net rental income from real property and qualified retirement plans (IRS Sec. 4974), such as IRA, 401 (K), and Keough plans, and government deferred compensation plans (IRS Sec. 457). The combined total of pension and eligible retirement income may not exceed $12,500 per person age 60 or over. If you are under age 60 and receiving a pension, the exclusion amount is limited to $2,000. Social Security and Railroad Retirement benefits are not taxable in Delaware and should not be included in taxable income. Also, Delaware has a graduated tax rate ranging from 2.2% to 5.55% for income under $60,000, and 5.95% for income of $60,000 or over. For information regarding property taxes, you can access the Delaware Development Office web page at www.dedo.delaware.gov and do a search on Real Estate Taxes or you may contact the Property Tax office for the county you plan to live in. You may contact the Property Tax offices at the following phone numbers: Property Tax - New Castle County (302) 323-2600 Property Tax - Kent County (302) 736-2077 Property Tax - Sussex County (302) 855-7760 http://www.BridgetAtTheBeach.com |
|
|