Bill > S2568

Introduced Session

This bill (1) expands eligibility for the partial gross income tax exclusion on pension and retirement income to certain taxpayers with gross incomes exceeding $150,000, and (2) increases the amount of the exclusion that qualifying taxpayers may claim. Under current law, qualifying taxpayers with $150,000 or less in gross income who are at least 62 years old or disabled may exclude certain pension and retirement income from taxable gross income, up to a certain amount, depending on filing status. The bill expands eligibility for the exclusion to qualifying taxpayers with incomes in excess of $150,000, so that all qualifying taxpayers may claim a full or partial exclusion, regardless of income. The bill also increases the amount of the pension and retirement and income exclusion by allowing qualifying taxpayers to exempt the first $150,000 of pension payments and other retirement income as well as 50 percent of any payments exceeding $150,000 up to $300,000 during a taxable year. A taxpayer would not be permitted to claim an exemption for any payments exceeding $300,000. Under current law, a qualifying taxpayer with an annual income of $100,000 or less is allowed an exclusion as follows: Filer TypeAmount of ExclusionMarried filing jointlyUp to $100,000Married filing separatelyUp to $50,000SingleUp to $75,000 For a qualifying taxpayer whose income exceeds $100,000 but is less than or equal to $125,000, current law allows the taxpayer to claim an exclusion from gross income as follows: Filer TypeAmount of ExclusionMarried filing jointly50 percent of pension payments and other retirement incomeMarried filing separately25 percent of pension payments and other retirement incomeSingle37.5 percent of pension payments and other retirement income For a qualifying taxpayer whose income exceeds $125,000 but is less than or equal to $150,000, current law allows the taxpayer to claim an exclusion from gross income as follows: Filer TypeAmount of ExclusionMarried filing jointly25 percent of pension payments and other retirement incomeMarried filing separately12.5 percent of pension payments and other retirement incomeSingle18.75 percent of pension payments and other retirement income

Committee Categories

Tony Bucco (R)*,  Parker Space (R), 

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 02/08/2024)

Official Document