Tags: Retirement | retirement | North Dakota | taxes

Taxes for Retirees in North Dakota

By    |   Wednesday, 10 June 2015 07:09 PM

It is never fun to think about taxes, but as retirement approaches, it becomes an important topic to ponder. Taxes for retirees vary greatly between the states as they are decided on a state level, so it is important to learn the tax specifics for anywhere you are considering retiringt. North Dakota may not be one the first places that comes to mind when thinking about retirement, but it is frequently ranked as one of the best places in which to retire, according to sites like Bankrate. Therefore, it is helpful to know what sort of taxes retirees can expect to pay in the state.

Free Retirement Calculator: When Can You Retire? — Click Here to Find Out

In terms of personal income taxes, retirees will be glad to know that, according to the Retirement Living Information Center, North Dakota allows full tax deductions on medical and dental expenses. On basic income, up to $5,000 can be excluded from civil service, military, some state and local government, and other qualified pensions, less any money awarded by Social Security. However, government pensions from other states are fully taxed. While there are no deductions specifically for retired military personnel, there are special conditions for those who are disabled. Both those who joined the military before September 24, 1975, and who are receiving or could receive disability status from combat injuries have broad exemption from North Dakota's income tax. Retirement pay from service-related disability also generally receives these same exemptions, but not always.

How Soon Can You Retire? Free Test Shows You When — Click Here

Eventually, all retirees in North Dakota will have the potential to receive a Homestead Tax Credit from the state. This credit is available for all citizens age 65 and older and all disabled citizens who own or rent a home in North Dakota. The greatest amount of credit awarded through this program is $4,500. To be eligible, the combined income of all immediate family members (applicant, spouse, and any dependents) must not be greater than $26,000 for the calendar year before being assessed for the credit. Additionally, an applicant's assets may not be greater than $75,000.

While North Dakota does not have some of the exemptions and benefits of other states, its rates and expectations for taxes on retirees are still quite fair.

An Extremely Simple Way to Determine If You're Ready to Retire — Find Out Now

© 2018 Newsmax. All rights reserved.

1Like our page
It is never fun to think about taxes, but as retirement approaches, it becomes an important topic to ponder.
retirement, North Dakota, taxes
Wednesday, 10 June 2015 07:09 PM
Newsmax Media, Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
© Newsmax Media, Inc.
All Rights Reserved