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|
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.