|
|
PSA: Just found out OH taxes LTCG as ordinary income
02-12-2021, 07:20 PM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
|
PSA: Just found out OH taxes LTCG as ordinary income
I always assumed that OH taxed LTCG the same as federal. Nope. They treat all LTCG as ordinary income. Bummer. Now I have to redo my tax calculations.
For states with high income tax, this could really put a crimp on tax gain harvesting.
Carry on.
__________________
Consistently sets low goals and fails to achieve them.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
02-12-2021, 07:54 PM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,677
|
PA taxes all taxable income at the same rate. The good news is that neither SS nor pensions are taxable income.
|
|
|
02-12-2021, 07:56 PM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,479
|
AFAIK, few or no states give favorable treatment to LTCGs.
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged
"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
|
|
|
02-12-2021, 08:17 PM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,353
|
OH does exempt SS.
__________________
The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
|
|
|
02-12-2021, 08:50 PM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
|
Vermont does too... just exempts the first $5k a year, then ordinary income.
Somewhat surprised that it is a surprise.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
02-12-2021, 09:20 PM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
|
Quote:
Originally Posted by pb4uski
Vermont does too... just exempts the first $5k a year, then ordinary income.
Somewhat surprised that it is a surprise.
|
You'd be surprised how many times I have been surprised.
__________________
Consistently sets low goals and fails to achieve them.
|
|
|
02-13-2021, 06:50 AM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,327
|
Quote:
Originally Posted by corn18
You'd be surprised how many times I have been surprised.
|
One reason I came to this site is so that there are as few surprises as possible when I retire. The number of things I haven't thought of is rapidly exceeding the number of things I have thought of.
|
|
|
02-13-2021, 06:55 AM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Jun 2002
Posts: 1,633
|
Quote:
Originally Posted by pb4uski
Vermont does too... just exempts the first $5k a year, then ordinary income.
Somewhat surprised that it is a surprise.
|
I got a nice pay raise when I moved from VT to “Taxachussets”. No tax on SS or military pension (my main income sources). Flat 5% on all income that is taxed.
__________________
friar1610
|
|
|
02-13-2021, 07:37 AM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
|
Yeah, but you have to live in Massachusetts.[emoji45]
P.S. We lived in the greater Boston area for 6 years in the early 80s and both DW and I went to graduate school at Boston University and Northeastern University, respectively, so I'm sort of kidding (sort of).
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
02-13-2021, 07:46 AM
|
#10
|
Thinks s/he gets paid by the post
Join Date: Oct 2017
Posts: 1,137
|
MN taxes LTCG as ordinary income. They have been slow to adjust the standard exemptions to the Federal level but I understand they are this year.
If states are going to have a substantial income tax, such as MN, it would be nice if they would follow the Federal rules to the letter. It would sure make tax planning and prep a lot easier for the state residents.
|
|
|
02-13-2021, 07:52 AM
|
#11
|
Thinks s/he gets paid by the post
Join Date: Jun 2002
Posts: 1,633
|
Quote:
Originally Posted by pb4uski
Yeah, but you have to live in Massachusetts.[emoji45]
P.S. We lived in the greater Boston area for 6 years in the early 80s and both DW and I went to graduate school at Boston University and Northeastern University, respectively, so I'm sort of kidding (sort of).
|
Oh, no problem. I’ve lived a lot of different places. Really likedVT but needed to be closer to family. I would never pick a location based solely on taxes.
__________________
friar1610
|
|
|
02-13-2021, 08:06 AM
|
#12
|
Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,653
|
Quote:
Originally Posted by USGrant1962
AFAIK, few or no states give favorable treatment to LTCGs.
|
Right. A conforming state often begins with the Federal AGI and then you make adjustments in or out.
|
|
|
02-13-2021, 08:17 AM
|
#13
|
Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Upstate
Posts: 2,948
|
Quote:
Originally Posted by pb4uski
Yeah, but you have to live in Massachusetts.[emoji45]
P.S. We lived in the greater Boston area for 6 years in the early 80s and both DW and I went to graduate school at Boston University and Northeastern University, respectively, so I'm sort of kidding (sort of).
|
Now that my child is in college in Massachusetts, I've had to "tone down" my use of the term "Masshole" when referring to MA drivers. {Mods, all in jest here}
signed, NY resident who lives close to MA and VT borders.
|
|
|
02-15-2021, 05:38 AM
|
#14
|
Recycles dryer sheets
Join Date: Sep 2009
Posts: 124
|
I'm right there with ya, copyright. MA = the only place I've ever driven where, as you were steaming down the Mass Pike at 70 MPH, it was YOUR responsibility to yield to the crazies that would just pull out on to the road, regardless of how close you were or how fast you were going!!! *** Correction - it was Rt. 9, the Boston-Worcester Tpke ***
|
|
|
02-15-2021, 05:40 AM
|
#15
|
Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,691
|
Quote:
Originally Posted by Philliefan33
PA taxes all taxable income at the same rate. The good news is that neither SS nor pensions are taxable income.
|
What about IRA withdrawals?
|
|
|
02-15-2021, 05:45 AM
|
#16
|
Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,198
|
Quote:
Originally Posted by copyright1997reloaded
Now that my child is in college in Massachusetts, I've had to "tone down" my use of the term "Masshole" when referring to MA drivers. {Mods, all in jest here}
signed, NY resident who lives close to MA and VT borders.
|
But are they really any worse than the Mainiacs or the New Hamsters? I think it's just a matter of a few bad apples spoiling the reputation of the rest of the barrel.
I've lived all over the US, and everywhere in my experience the drivers from at least one adjoining state have been disparaged like this. It seems to be normal and inevitable.
__________________
I thought growing old would take longer.
|
|
|
PSA: Just found out OH taxes LTCG as ordinary income
02-15-2021, 05:58 AM
|
#17
|
Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,677
|
PSA: Just found out OH taxes LTCG as ordinary income
Quote:
Originally Posted by teejayevans
What about IRA withdrawals?
|
No state income tax on regular IRA withdrawals. Any 1099-R with code 7 in Box 7 is not taxed in PA. Code 7D or 4D is taxed as interest, code 4 is not taxed but counts as income when applying for other credits.
PA does not give any deduction for contributions to IRAs or 401Ks.
|
|
|
02-15-2021, 07:05 AM
|
#18
|
Recycles dryer sheets
Join Date: Sep 2009
Posts: 99
|
Also in PA, if you can keep your taxable income below 13K as MFJ, it is forgiven if you file PA Schedule SP. Each year I harvest just enough LTCG's to get some 100% tax free income. (All my other income is untaxed in PA)
|
|
|
02-15-2021, 03:08 PM
|
#19
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,681
|
New York uses one's federal return as a starting point for determining state AGI and TI. But I have discovered many differences over the years and continue to find new ones from year to year, including some for 2020.
When I did my 2008 returns, the ones which included the company stock payout, I saw that NY didn't impose that 10% penalty for early withdrawal (before age 59.9) from retirement accounts. I already knew NY taxed all favorably taxed QD and LTCG as ordinary income.
I am doing my 90-yo dad's tax returns this time and have discovered some more differences. Nearly all of his income is not taxable, including SS (even if some of it ends up being federally taxable), his IRA withdrawals, and his small pension. I doubt he has paid any state income tax since he retired in 1994. In fact, he has been building up a LTC Premium tax credit which can be carried over from year to year if not taken in a given year.
For 2020, have any of you fellow New Yorkers notices this new form, IT-558, which adjusts one's already adjusted federal AGI to what they call a "Recomputed federal AGI?" Form IT-558 ignores and federal tax law changes stemming from the 2020 CARES Act such as disallowing cash/check charitable contributions up to $300 claimed by those who filed the standard deduction on their federal returns. So, I have to complete IT-558 to post the $105 I donated to charities, then add it back on the main form (IT-201) to get my "Recomputed federal AGI."
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
|
|
|
02-15-2021, 03:17 PM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,637
|
Quote:
Originally Posted by SomedaySoon
Also in PA, if you can keep your taxable income below 13K as MFJ, it is forgiven if you file PA Schedule SP. Each year I harvest just enough LTCG's to get some 100% tax free income. (All my other income is untaxed in PA)
|
Yes, PA is a good place to retire financially. But then there is winter...
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|