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sueellengrizzard
New Member

I spent $12,000 taxed dollars to purchase retirement system credit. Is it deductable?

 
1 Reply
Marketstar
Level 7

I spent $12,000 taxed dollars to purchase retirement system credit. Is it deductable?

No, there is no deduction for purchasing the buyback service credit in the year that you pay for them.

Instead, when you retire, you will not have to pay income tax on the portion of your retirement pay that represents the amount you paid in,because that income has already been taxed.

https://ttlc.intuit.com/questions/2945276-is-federal-employee-service-credit-buyback-expense-de...

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