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, 2014.

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.

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