Related but not related;
I want to give a shout-out of thanks to (I think it was) Max-D that pointed out The Pension Income Tax Limits Act, 4 USC Section 114 [P. L. 104-95 (Jan. 10, 1996)] Paragraph; “(a) No State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State (as determined under the laws of such State).”
State of Rhode Island Division of Taxation has finally responded to me with a judgment that I am domiciled in the State of Hawaii and not State of Rhode Island therefore I am subject to Hawaii taxes.
I was also advised by RI taxation that I must file amended RI-1040NR (Non Resident) forms and my RI income taxes paid will be rebated to me.
So Justin here is another reason why people are leaving RI and taking their money with them:
Rhode Island Retirement Income Taxes: Railroad Retirement benefits are exempt. Out-of-state government pensions are fully taxed. Social Security is taxed to the extent it is federally taxed. All pensions in Rhode Island are fully taxed.
Seven states (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) do not tax personal income.
Ten states exclude all federal, state and municipal pension income from taxation. These include Alabama, Hawaii, Illinois, Kansas, Louisiana, Massachusetts, Michigan, Mississippi, New York and Pennsylvania.
The District of Columbia and 27 states with income taxes provide a full exclusion for Social Security benefits — Alabama, Arizona, Arkansas, California, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Virginia and Wisconsin.