What is the Civil Service Annuity Deduction?
If your federal adjusted gross income includes federal civil service annuity payments, you may be able to take a deduction if you were at least 62 years of age by December 31, 2012.
To figure your deduction, take the amount of annuity payments received or $2,000, whichever is less. Then subtract all Social Security and railroad retirement benefits received.
Example. Your civil service annuity is $6,000. Your Social Security income is $1,200. Here's how to figure your deduction:
If you and your spouse both received civil service annuities, you may each take this deduction for a maximum of $4,000 (no more than $2,000 per qualifying person), provided you both meet the age requirement.
This deduction is available only to the annuitant and is not available to the annuitant's beneficiary.
To figure your deduction, take the amount of annuity payments received or $2,000, whichever is less. Then subtract all Social Security and railroad retirement benefits received.
Example. Your civil service annuity is $6,000. Your Social Security income is $1,200. Here's how to figure your deduction:
| Lesser of the amount of the annuity ($6,000) or $2,000 | $2,000 |
| Social Security benefits | $1,200 |
| Allowable deduction | $800 |
If you and your spouse both received civil service annuities, you may each take this deduction for a maximum of $4,000 (no more than $2,000 per qualifying person), provided you both meet the age requirement.
This deduction is available only to the annuitant and is not available to the annuitant's beneficiary.
