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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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Does the State of Hawaii tax your Social Security income ...

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Does the State of Hawaii tax your Social Security income and state government pension from another state?

Hello there,

Thinking of moving to Hawaii? Sounds great.

If you are a Hawaii resident, Hawaii starts with your federal gross income and then there are additions and subtractions.

Fortunately, Hawaii does not tax Social Security Benefits even if the federal government does tax part of your benefits, and Hawaii also does not tax qualified distributions from an employer-funded pension plan (regardless of state of origin).

Here is a link to instructions for HI forms, see pages 13-14 for this info:

http://www.hawaii.gov/tax/2006/n11ins.pdf

Wendy Reed and 3 other Tax Specialists are ready to help you
Customer: replied 9 years ago.
I guess I have an employer funded pension. It is from the State of Michigan defined benefit program and is a monthly retirement pension. Is that what you are talking about by a qualified distribution?
Yes, your Michigan state pension would be considered an employer funded pension. Qualified distribution generally means that the distribution follow IRS rules of distributions, such as a monthly disbursement schedule, and that the distribution is not an early withdrawal.

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