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State Taxation of Social Security and Pensions in 2000

For some older Americans, the taxation of retirement income by states can add a significant amount to their total tax burden. In this update of the similarly titled 1996 AARP Public Policy Institute issue brief, David Baer summarizes personal income tax treatment of Social Security benefits and pension income for tax year 2000 by the 41 states and the District of Columbia that have a broad-based income tax. Exclusions and credits on other types of retirement income are described, and any age or income requirements for receiving retirement income exemptions/credits are shown. Policymakers, public officials, and policy analysts will find this information useful in making state comparisons, and retirees can use it to help them make decisions on where to retire based on differences in tax treatment. (15 pages)