Retirement income in District of Columbia
Varies
Does District of Columbia Tax Retirement Income?
Short answer: Yes. Pensions and 401(k)/IRA withdrawals are taxed as ordinary income; DC has no general retirement income exclusion.
Government pensions: The former $3,000 exclusion for DC and federal government pensions was repealed starting in tax year 2015. Survivor benefits from DC/federal pensions received by survivors 62+ remain excludable. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in District of Columbia
Varies
Individuals / Personal Taxes
Yes. Pensions and 401(k)/IRA withdrawals are taxed as ordinary income; DC has no general retirement income exclusion.
Business justification
Yes. Pensions and 401(k)/IRA withdrawals are taxed as ordinary income; DC has no general retirement income exclusion. Government pensions: The former $3,000 exclusion for DC and federal government pensions was repealed starting in tax year 2015. Survivor benefits from DC/federal pensions received by survivors 62+ remain excludable. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions