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    engineer1's Avatar
    engineer1 Posts: 4, Reputation: 1
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    #1

    Jul 14, 2009, 02:52 PM
    Pension taxation
    I am 56 years old and a resident of Pennsylvania. If I retire today (from Lockheed Martin), what will be the federal, state, local taxes (or percentage) that will be accessed? If I retire at 62 and 65 will any of these percentages (of taxes) change? If so, by how much? Are there any other taxes that I did not include? Thanks in advance.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 15, 2009, 10:38 AM
    Your tax rate is based on your overall income level, and you have not even provided what your retirement pay would be, what your exact location in Pennsylvania will be, whether your wife works or not, and what other sources of income are available to you.

    Our multiple financial skills do NOT include the ability to read minds, so we cannot your question without more information.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #3

    Jul 16, 2009, 06:14 AM
    Quote Originally Posted by AtlantaTaxExpert View Post
    Our multiple financial skills do NOT include the ability to read minds, so we cannot your question without more information.
    I love it!

    Maybe we can't read minds, but I can tell you that in PA the income tax excludes pension and Social Security income, so that portion of your tax bill will be $0, regardless of your age.

    Also, tax rate are not dependent on age, but for federal tax purposes you get to claim a higher standard deduction if you (and/or your spouse) are 65 or older. Of course this doesn't help if you itemize.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jul 16, 2009, 07:26 AM
    ebaines:

    Was NOT aware that pension income was not subject to PA income tax; learn something new every day! :-)
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