HB 989 -- Income Tax Deduction for Pensions

Sponsor:  Champion

Under current law, the pension deduction allowed for purposes of
computation of individual income tax liability is limited to the
first $6,000 of pension income received from a government
source.  The deduction for private source pensions is phased-in
over a 5 year period beginning at $1,000 for tax year 1998 and
ending at $6,000 for tax year 2002 and thereafter.  Both the
government and private source pension deduction is limited to
taxpayers with income of $32,000 or less, if married, and
$25,000 or less, if single.

This bill fully implements the $6,000 maximum deduction for
private source pensions in the tax year 1999 and eliminates the
income limit for both government and private source pensioners.