Is there a deduction for retired civil service workers on indiana state for $16000 and where do I go on the state tax form to get

[IsabellaG]

Yes,  you can deduct up to $16,000 for federal civil service annuity payments if you were at least age 62 by the end of the tax year. Each spouse can deduct up to $16,000 if both spouses are eligible and receive qualified payments for a maximum $32,000 deduction. The deduction is automatically computed by reducing the amount of annuity payments received or $16,000, whichever is less, by all Social Security and Tier 1 and Tier 2 Railroad Retirement benefits received.

1. Make sure that you enter your annuity as a CSA-1099-R in the federal section.
2. In the state return, on the page Here's the income that Indiana handles differently, you'll see the amount of your deduction on Civil Service Annuity Deduction. If you don't see a deduction, it could be because you have Social Security or Railroad Retirement benefits that exceed $16,000.

[Goldwing]

The 2019 Indiana Turbo tax download is not allowing the $16,000 civil service annuity to be deducted from income.

[buchanj2]

Same Issue/Question

[buchanj2]

Does Turbo Tax put the deduction automatically for the free edition?

[JamesG1 · Accepted solution]

In the Indiana return, see Here's the income that Indiana handles differently.

The deduction should be there if you meet the qualifications.

If you don't see a deduction, it could be because you have Social Security or Railroad Retirement benefits that exceed $16,000.

See Indiana IT-40 booklet, page 18

"Civil Service Annuity Deduction 601

The income on line 1 of Form IT-40 may include federal civil service annuity income. If it does, you may be eligible to take a deduction if you were at least 62 years of age by the end of the tax year and/or a surviving spouse of a civil service annuitant.

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."

[veyette1]

I cannot locate in Turbotax where to add the deduction for state of IN civil service annuity.  Do I need to do my IN state tax manually? Filing for 2020

[DaveF1006]

No, you shouldn't need to manually input the deduction. To see if this worked, I created a test scenario for myself:

• In order for me to claim, I must be 62 years old or older. I created a birthdate that put me over that age range.
• I reported my annuity was $54,000 and my taxable social security was $5000..
• I checked the Indiana tax summary and i got a deduction for $16,000-2,654 (the taxable amount of social security)=$13654.
• Before I did this, i did go to the section in my Indiana return that stated Here's the income that Indiana handles differently
• Then checked start under Civil Service Annuity Deduction.  I don't know if this makes a difference but i was able to claim the deduction in my return.