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

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

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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Highlighted
New Member

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

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.

View solution in original post