Is a FERS Annuity Supplement Excluded from Taxable Income in Oklahoma for a Retired FERS Law Enforcement Officer?

[oinkryder]

As a 60 year-old retired Federal law enforcement individual, covered under the special retirement provisions for Federal law enforcement officers, I receive a FERS Annuity Supplement until I become eligible for social security at age 62.  The FERS Annuity Supplement is in addition to the basic FERS retirement payment, due to the fact employees covered under the special law enforcement retirement provisions are forced to retire at age 57.  

In addition to excluding up to $10,000 from my basic FERS retirement income on line 511-A, line 5, should I be able to exclude 100% of the FERS Annuity Supplement from my taxable income on the Oklahoma form 511-A, line 3?

Below is an excerpt from the Oklahoma form 511-A  instructions:

A3 - Federal Civil Service Retirement in Lieu of Social Security

Each individual may exclude 100% of their retirement benefits received from the Federal Civil Service Retirement System (CSRS), including survivor benefits, paid in lieu of Social Security to the extent such benefits are included in the federal adjusted gross income. Enter your Retirement Claim Number from your Form CSA 1099-R or CSF 1099-R in the box on Schedule 511-A, line 3 or Schedule 511NR-B, line 3. Enclose a copy of Form CSA 1099-R or CSF 1099-R with your return. To be eligible, such 1099-R must be in your name.

Note: Retirement benefits paid under the Federal Employees Retirement System (FERS) do not qualify for this exclusion except:

Retirement benefits containing both a FERS and a CSRS component, the CSRS component will qualify for the exclusion.
The FERS Annuity Supplement (as authorized by Chapter 84 of Title 5 of the United States Code) paid to certain FERS retirees until eligible for social security at age 62, will qualify for the exclusion.

[DaveF1006]

FERS and CSRS are two different retirement systems. Oklahoma only allows a $10,000 for FERS and 100% for CSRS. If you pension is FERS, your deduction is $10,000.

[oinkryder]

Dave - I included the Oklahoma form 511-A instructions in my original post.  Can you explain why the underlined language of the Note would not apply for my case as a FERS law enforcement officer?  I understand the differences between CSRS and FERS.  However, the Note appears to include an exception for the FERS Annuity Supplement for certain FERS retirees (I'm assuming Public Safety Officers would be in the category of certain employees).  I appreciate your response and hope you can unconfuse me.  Thank you.

[AmyC]

Thank you for clarifying. Based on your comments, it does look as if your supplement would qualify. You would need two separate 1099-R forms. (If you only have one, you will need to divide it up to create one for the annuity and one for the supplement.) 

When you go through the OK program, it will show you each 1099-R and you can select the type of income to determine how it is taxed. I entered $1,000 as civil service in my program and see that it shows up government in the summary as a deduction.

Your goal is to get the correct taxable amount showing in the summary since that is what will be moved to your tax form.