Students interested in this college are also interested in: Colorado State University, University of Washington, University of California, Berkeley, University of Oregon, University of California, Los Angeles, University of California, Santa Barbara. Overview.
These plans areexcluded from tax on your federal return, but not onyour state income tax return. Once you retire and beginto receive pension benefits, you will pay federal tax onyour retirement payments, but you will not pay PA taxon those benefits.
Dividend Income. Dividendsâdistributions of a corporationâs profits to the shareholdersâare also taxable. Like interest income, dividend income is not subject to social security or Medicare taxes. Also, dividend income may be subject to lower income tax rates than other types of income.ividend Income. Dividendsâdistributions of a corporationâs profits to the shareholdersâare also taxable. Like interest income, dividend income is not subject to social security or Medicare taxes. Also, dividend income may be subject to lower income tax rates than other types of income.