News & Events

Tax Break on Some RI Pensions

Do you qualify for RI’s new modification regarding taxable pension and/or annuity income?

By David Gobeille, Tax Partner

Tax Break, Retirement, Pension Under the new Rhode Island state law, you can be allowed a reduction of up to $15,000 from taxable pension and/or annuity income that is included in your adjustable gross income for the taxable year beginning January 1, 2017. This means you can avoid RI’s personal income tax if you meet the criteria for the new provision. There are three criteria you must clear in order to benefit from the tax break.

  1. At least some of your pension and/or annuity income must be taxed at the federal level;
  2. You must have reached “full retirement age” based on Social Security Administration rules; and
  3. Your federal adjusted gross income must be below $80,000 if the filing status on the RI return is single, head of household, or married filing separately; or $100,000 if you are married and filing jointly, or qualifying widower.

For more information about this provision or other tax topics, please contact a Sansiveri tax professional at 401-331-0500.