Retired prior to tax year(s)
What Types of Retirement Income are Not Taxable?
Interest, dividends, Social Security, pension payments or withdrawals are examples of retirement income that is not taxable. You may still be required to file a municipal income tax return in retirement if you have any wages, salaries, commissions, bonuses, tips, sick pay, stock options, severance pay, director’s fees, royalties based on land rights, employer provided supplemental unemployment benefits (subpay), or profits/losses from self-employment, farming or partnerships. Rental income, S corporation income and lottery/gambling winnings are taxable according to each municipality’s ordinance. Your contributions (deferrals) into retirement plans (such as a 401(k) plans) are taxable.