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Tax.appeal.168, Tax Accountant
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I am considering moving from Michigan to California. I recieve

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I am considering moving from Michigan to California. I recieve approximately a 40K pension from Ford Motor and my wife recieves to 2 small pensions from EDS and Local 880 Retail union of about 4.5K. We also recieve approximately 40K from Social Security from the both of us. With a combined income of 80K do we have to pay California Incomde Tax on either our pension or Social Security?
Welcome. THANK YOU for choosing Just Answer. My name is XXXXX XXXXX my goal is to help make YOUR life, a little...LESS taxing.

California is one of the 12 states that fully tax private pensions. SEE BELOW:

State Taxes and Private Pensions

State income tax exclusions for private pension income are not as generous as those for Social Security and public pensions. In fact, twelve states and the District of Columbia fully tax private pensions. Those states are: Arizona, California, Idaho, Indiana, Kansas, Massachusetts, Minnesota, Nebraska, North Dakota, Rhode Island, Vermont, and West Virginia.


However, the state of California does not tax social security benefits. Note that on the federal level, since your income exceeds the maximum threshold amount, up to 85% of the social security payments can be taxed.


Please let me know if I can be of further assistance to you regarding this matter.

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