The income on line 1 of Form IT-40 may include federal civil service annuity income. If it does, you may be eligible to take a deduction if you were at least 62 years of age by the end of the tax year and/or a surviving spouse of a civil service annuitantFor each civil service annuitant, the deduction is limited to:
• the lesser of the taxable amount of civil service annuity income included in federal adjusted gross income or $16,000,
• less all amounts of Social Security income and tier 1 and tier 2 Railroad Retirement income (issued by the Railroad Retirement Board) received by the civil service annuitant (as reported on federal Form 1040/1040SR, lines 4a and 5a),
Surviving Spouse
A surviving spouse may be eligible to claim this deduction. There is no age requirement for the surviving spouse.
You must maintain Form CSA 1099-R with your records as the department can require you to provide it at a later date.
For more information about this deduction see Income Tax Information Bulletin #6 at www.in.gov/dor/3650.htm. Enter code 601 on Schedule C under line 11 if claiming this deduction.