Solved: 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?

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?

posted

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.

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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.