Taxation of civil service annuities.

Authors: Senator James Tomes, Senator Vaneta Becker, Senator Ronald Grooms

Co-authors: Senator Erin Houchin, Senator Mark Stoops, Senator Brent Steele, Senator Ron Alting, Senator Dennis Kruse, Senator Lonnie Randolph, Senator Earline Rogers, Senator Frank Mrvan, Senator Mark Messmer, Senator Rick Niemeyer, Senator Jean Breaux, Senator Timothy Lanane, Senator Travis Holdman, Senator Eric Bassler, Senator Randall Head


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.