How and where do I take the $16,000 DEDUCTION for my Civil Sevice Annuity on my Indiana State Return using Turbotax Premier?

[JohnW152]

You may not be eligible for the deduction on your Indiana return.  It might be limited by your Social Security benefit. 

According to Civil Service Annuity Deduction in the IT-40 Booklet:

For each civil service annuitant, the deduction is limited to: 

• The lesser of the amount of taxable 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.

However, if you are eligible, you may not be seeing the deduction due to an input error in the federal section of the TurboTax program.  To get back into the relevant section of TurboTax Online: 

1. Select Tax Home in the left pane
2. On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the Income & Expenses or Wages & Income box, then select Start, Continue or Pick up where you left off
3. Below Your income and expenses, select Edit/Add to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
4. Select Edit to the right of your civil service retirement item
5. When you get to the Who gave you a 1099-R? screen, make sure you select one of the two Office of Personnel Management boxes, whichever is appropriate to your 1099-R form
6. Enter or correct any information and continue through your federal return
7. When you get into your Indiana return, you'll come to the Here's the income that Indiana handles differently screen. 
8. Select Start to the right of Civil Service Annuity Deduction 

If you qualify for the exclusion, your deduction will display near the top of the Here's the income that Indiana handles differently screen.