Massachusetts Retirees United is ever vigilant to assure that fair practices exist toward all retirees. In 2013 we began the work of trying to correct our retirees living in other states from paying double taxes on the part of their pension that was already taxed by Massachusetts. The part that a member contributed to any of the Retirement Systems in the State was already taxed by this state. As this is addressed by each state we will provide you data here on how the state chose to correct it and what the member must do to receive the credit/benefit.
South Carolina
12-6-3500 is the law of South Carolina that will allow you to recoup the taxes you already paid to Massachusetts. MRU worked with the Teacher’s Retirement System and the Staff Attorney & Budget Analyst of the SC House of Representatives Ways & Means Committee in the interpreting and implementing the law for our MA retires. In addition to the taxes paid on the pension contribution, this law, according to the DOR of SC, will allow the taxes paid to Massachusetts on any retirement plan, such as a Tax Sheltered Annuity, 403b, etc. contributed up to January 1998 to be included.
What do you need in order to file for this?
Request in writing, that the respective retirement system provide you on their letterhead “your total contribution to your pension up to the date of your retirement”. Make the request of the MTRS by writing to:
Retiree Services
Massachusetts Teachers’ Retirement System
One Charles Park
Cambridge, MA 02142-1206
If retired from Boston write to:
Boston Retirement System
1 City Hall Plaza Room 816
Boston, MA 02201
All monies you contributed to a TSA, 403b or any other pre-taxed accounts—you paid state income tax to MA on contributions up to January 1998. To find out the amount you contributed up to that date write to the school district(s) payroll department where you were working at the time you contributed. They will be able to provide you on their letterhead the amounts you contributed up to that date. In most instances they can do this on a yearly rather than total amount.
The credit for both the pre-taxed accounts and the pension monies must be claimed over the taxpayer’s lifetime so a Life Expectancy Chart must be used as well as the State of South Carolina Dept. of Revenue Qualified Retirement Plan Contribution Credit Form.
Link for this form: Credit Form
Tax information cannot be provided by either the MTRS or the BRS but by the State of South Carolina