When are CSRS contributions taxed? during employment or during retirement

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The State of VA is trying to tax me for contributions made to my CSRS retirement. Their claim is that no taxes were paid to the State of Va or any state. My position is that all contributions to CSRS during my career were pre taxed by the State where I was living at the time or State Tax was not required as in the State of Tn., I claimed as my home State during my Embassy deployment overseas

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Asked on November 16, 2018 4:31 pm


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The rules pertaining to taxation of annuities varies from state to state. Even though you claimed TN as your home state when working, now that you are collecting a pension, the rules in your state of residence determine if you must pay taxes on your annuity. Virginia does tax federal annuities. Please see the following link: https://tax.virginia.gov/subtractions

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Answered on November 17, 2018 5:57 pm