Yes, you can deduct up to $16,000
for federal civil service annuity payments if you were at
least age 62 by the end of the tax year. Each spouse can deduct
up to $16,000 if both spouses are eligible and receive qualified
payments for a maximum $32,000 deduction. The deduction is
automatically computed by reducing the amount of annuity payments received or
$16,000, whichever is less, by all Social Security and Tier 1 and
Tier 2 Railroad Retirement benefits received.
- Make sure that you enter your annuity as a CSA-1099-R in the federal section.
- In the state return, on the page Here's the income that Indiana handles differently, you'll see the amount of your deduction on Civil Service Annuity Deduction. If you don't see a deduction, it could be because you have Social Security or Railroad Retirement benefits that exceed $16,000.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
