Tags: Retirement | retirement | Idaho | taxes

Taxes for Retirees in Idaho

By    |   Thursday, 04 Jun 2015 02:00 AM

Spending retirement in Idaho has become a popular trend among Americans after the state consistently ranked among the best states for retirees in popular surveys for the past few years. While there is steady influx of retirees to Idaho, it will be wise for those who are thinking of relocating to the state to consider important issues before making the move. Among these important issues is the local tax burden on retirees.

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Idaho earned its reputation as an ideal state to spend retirement primarily due to its low crime rate, decent economy, climate, and life expectancy. When it comes to local tax burden, however, Bankrate.com ranks Idaho as 27th among the 50 states in its 2015 survey. This means that the local tax burden for retirees in the state may not be the most ideal.

According to the Idaho State Tax Commission, all income due to a resident in Idaho, including retirement income is subject to state tax. While this may be the case, seniors and retirees in the state can still enjoy certain tax exemptions and deductions for benefits. These include benefits such as Social Security, Canadian Social Security, and Railroad Retirement Board. Seniors and retirees can also qualify for a reduction in property tax and receive free assistance with the filing of grocery credit refunds.

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Seniors and retirees aged 65 or older, or disabled and at least 62 years old may be qualifiedto receive tax deductions for the following types of retirement benefits:
  • retirement annuities paid to civil service employees or the un-remarried widow of the employee
  • retirement benefits paid by the United States to a retired member of a U.S. military service or the un-remarried widow of the service member
  • retirement benefits of an Idaho fireman or the un-remarried widow of the fireman, and the retirement benefits of an Idaho policeman or the un-remarried widow of the policeman.
Another perk of spending retirement in Idaho, as far as taxes are concerned, include free aid to the elderly with the preparation of their income tax return near their location. Trained volunteers provide help to seniors with their income tax preparation, and then file the returns at websites sponsored by the IRS and AARP.

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Spending retirement in Idaho has become a popular trend among Americans after the state consistently ranked among the best states for retirees in popular surveys for the past few years.
retirement, Idaho, taxes
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2015-00-04
Thursday, 04 Jun 2015 02:00 AM
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