03 Jul Is the pension exclusion cut-off going up with inflation?
Photo: pixabay.comQ. Is the income limit for the pension exclusion indexed? Is it going up in the coming years? I am a single taxpayer.
— Senior
A. As of now, no.
While the state legislature made sweeping changes to property tax breaks for seniors, the pension exclusion is staying the same.
You said you’re single, but let’s cover how this works for all senior taxpayers in the state.
You — and/or your spouse if you are filing jointly — must be 62 or older or those who, because of a disability, are eligible for Social Security benefits, can qualify if their total income for the entire year was $150,000 or less.
If your gross income is less than $100,000 you can exclude up to 100% for those married filing jointly, 75% if you’re filing single or 50% if you’re married and filing a separate return.
If gross income is $100,001 to $125,000, you can exclude up to 50% if you’re married and filing a joint return, 37.5% for singles and 25% for those married filing separately.
And finally, if your gross income is $125,001 to $150,000, you can exclude up to 25% for those married filing jointly, 18.75% for singles and 12.5% for those married filing separately.
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This story was originally published on July 3, 2023.
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