egsiegel
New Member

My wife bought back time on a pension. is the payment of $3800 deductable?

 
JohnW15
Intuit Alumni

Retirement tax questions

Unfortunately, no.  There’s no available deduction for purchasing a buyback credit in the year that she pays for them.

On the bright side, when she retires, she won’t have to pay income tax on the portion of her retirement pay reflecting the amount she paid in, since that income has already been taxed.

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