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Indiana Civil Service Annuity Deduction

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Question
Indiana Civil Service Annuity Deduction

Answer
The income on line 1 of Form IT-40 may include federal civil service annuity payments. If it does, you may be able to take a deduction if you were at least 62 years of age by Dec. 31.
To figure your deduction, begin with the amount of annuity payments received or $2,000, whichever is less. Subtract from that amount any Social Security and railroad retirement benefits (issued by the Railroad Retirement Board) you received.
Example. Your civil service annuity is $6,000. Your Social Security income is $1,200. Here is how to figure your deduction:
Lesser of the amount of the
annuity ($6,000) or $2,000 ......................... $2,000
Social Security benefits ............................... $1,200
Allowable deduction ................................... $ 800
If you and your spouse both received civil service annuities, you may each take this deduction for a maximum of $4,000 (no more than $2,000 per qualifying person), provided you both meet the age requirement.
This deduction is available only to the annuitant and is not available to the annuitant's beneficiary. For more information about this deduction see Income Tax Information Bulletin #6 at www.in.gov/dor/3650.htm

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Views: 794 Created on: Jun 15, 2013
Date updated: Nov 19, 2014

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