New Jersey Retirees - Possible proposal by Govenor to tax retirements

[Don in SJ]

One of the reasons military retire in certain states are things like no state tax on their retirements. Well, I just received a email from my former commander who keeps a lot of us abreast on what's happening sent me an attachment letter to write to protest taking the no income tax on military pensions away from NJ retirees residing in the Garden State.


March 31, 2009

Governor Jon Corzine
PO Box 001
Trenton, New Jersey 08625

Dear Governor Corzine,

It has come to my attention that there is a State budget proposal pending to change the tax status of military retirees. As you know all military personnel serving the country and state must pay income tax on base pay regardless of where they serve during their active military career. However, military pensions are exempt from state income tax and should remain so. Most Americans and citizens of New Jersey believe retired military personnel, who have served and sacrificed for their country during long careers, deserve to receive more benefits and compensation not less.

Any change now in the tax status for military retirees which reduces their annual compensation, or even considering such a move, sends the wrong message to the public at large and our current military forces, i.e. “We appreciate your sacrifice, but not enough that we won’t raise the taxes on your pension”.

Maintaining this tax exemption for our state’s military retirees is vitally important to our retirees’ standard of living and our active military’s long term future. Providing greater benefits and tax breaks demonstrates that our State truly cares about our military. A tax hike is a step in the wrong direction and a disincentive for retention of our current military, especially to the members of the NJ National Guard, most of whom are currently “In Harms Way’ defending America’s freedoms and interests. Please take this option off the table in further budget negotiations. Our veterans have already sacrificed enough. Thank you for your time and consideration.

Sincerely,



Don

[Montana Jim]

Well Don - I hope nothing changes for you and you don't have to start paying. 

As a NY resident I paid all my NY State tax while stationed there, but did NOT have to while stationed elseware. If I move back to NY my retiree pay is exempt from NY State tax, but here in Montana I pay it.

You are right about certain states having to pay military retiree income while others do not, and it has to do with what states tax thier own employees at. 

Taxes... jeez. 

[ivan salis]

no state tax in florida