Taxation of civil service annuities.

Authors: Representative Edward Clere

Co-authors: Representative Robert Cherry, Representative Eric Allan Koch, Representative Steven Stemler

Sponsors: Senator Brent Steele, Senator Ryan Mishler, Senator Sue Landske

Co-Sponsors: Senator Ronald Grooms, Senator Ron Alting, Senator James Tomes, Senator Dennis Kruse, Senator Richard Young, Senator Mark Stoops, Senator Lindel Hume, Senator John Waterman, Senator Brent Waltz, Senator Lonnie Randolph, Senator Earline Rogers, Senator Timothy Skinner, Senator Vaneta Becker

Digest

Provides that the maximum state income tax deduction for federal civil service annuity income is equal to the lesser of: (1) the amount of federal civil service annuity income received during the taxable year; or (2) the average annual federal Social Security retirement benefit paid to Indiana retired workers during the calendar year preceding the taxpayer's taxable year. Retains the provision that reduces the deduction by the amount of any federal Social Security and railroad retirement benefits received by the taxpayer during the taxable year. Provides that the deduction is also available to a surviving spouse.