Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Still need to file? Our experts can get your taxes done right. Get started >
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
binxjt
New Member

I spent 4 years in the Navy and was hired as a civil servant and paid $1016.00 to buy back my military time so it counts as time employed. Is this tax deductible?

 
1 Best answer

Accepted Solutions
JohnW15
Intuit Alumni

I spent 4 years in the Navy and was hired as a civil servant and paid $1016.00 to buy back my military time so it counts as time employed. Is this tax deductible?

Unfortunately, no.  There’s no available deduction for purchasing the buyback service credit in the year that you pay for them.

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

View solution in original post

1 Reply
JohnW15
Intuit Alumni

I spent 4 years in the Navy and was hired as a civil servant and paid $1016.00 to buy back my military time so it counts as time employed. Is this tax deductible?

Unfortunately, no.  There’s no available deduction for purchasing the buyback service credit in the year that you pay for them.

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

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies
v
ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_~