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T. R. Miller, The SunTaxMan
T. R. Miller, The SunTaxMan, Public Accountant , Tax Preparer
Category: Tax
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Experience:  30+ years in Public Accounting and Tax Preparation
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Are Pensions & Social Security benefits taxable

Resolved Question:

No Comment Added
Submitted: 10 years ago.
Category: Tax
Expert:  T. R. Miller, The SunTaxMan replied 10 years ago.
Yes they are.

Pensions are usually fully federally taxable, and many have withholding deducted from them. Federal withholding is/should be arranged with the pension company.

Social Security benefits are federally taxable depending on your other/total income. A worksheet is included in the instructions for Form 1040 to determine how much, if any, of your benefits are/will be taxable.

Pensions and Social Security are NOT taxable, either to the state of PA, nor the local taxes that I am familiar with. Your profile does not indicate where you live in PA, so I cannot deal with YOUR local jurisdiction. Most local taxes, county and township in PA are "Earned Income Taxes" or "Wage Taxes," and thus do not include pensions or Social Security benefits.
Customer: replied 10 years ago.
I know I live in PA. I was asking if pensions & Social Security were taxable in the state of Delaware. So you
did not answer my question.
Customer: replied 10 years ago.
Rejected SunTaxMan's Post. Reason Given: My question was not ans. I know I live in PA. I was asking about the State of Delaware.
Expert:  T. R. Miller, The SunTaxMan replied 10 years ago.
You did not specify any particular state in your question! The only state info available in the post is PA - so I looked at your profile to see if you showed any place in PA as your residence, so I could address that locality as well as the state issue.The only state showing in the information provided by you is PA.

If you are looking for state specific information, this needs to be part of your question!

However, now that you have clarified your question....

Pensions in DE are taxable ONLY to residents of DE. Since you are a non-resident, you do not owe income tax to DE on the pension, even if it is received from a company you worked for, which company is/was in DE. If you lived in DE for any part of the year while you were collecting a pension from a DE source, that portion received WHILE YOU WERE A RESIDENT OF DE is taxable to DE. Even if you lived in DE while you worked in DE, the pension received from that DE source is NOT taxable to DE if you did not live in DE while you were/are collecting the pension.

Social Security benefits are NOT taxable in DE - to residents or non-residents.

I hope this provides the information you seek. If not, please post further information.

Now, I notice you have added Kennett Square to your profile. The local tax, administered by Berkheimer is an "Earned Income Tax" so pensions are not to be included.
T. R. Miller, The SunTaxMan, Public Accountant , Tax Preparer
Category: Tax
Satisfied Customers: 148
Experience: 30+ years in Public Accounting and Tax Preparation
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