Bill Text: IN HB1165 | 2011 | Regular Session | Introduced
Bill Title: Taxation of civil service annuities.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2011-02-08 - Representative Moses added as coauthor [HB1165 Detail]
Download: Indiana-2011-HB1165-Introduced.html
Citations Affected: IC 6-3-2.
Synopsis: Taxation of civil service annuities. Provides a 100% income
tax deduction, beginning in 2016, for federal civil service annuity
income received by an individual or the individual's surviving spouse
after subtracting Social Security benefits and railroad retirement
benefits. Phases in the deduction from 2012 through 2015. Removes
the requirement that an individual must be at least 62 years of age to be
eligible for the federal civil service annuity income tax deduction.
Provides that an individual's surviving spouse may be eligible for the
federal civil service annuity income tax deduction.
Effective: July 1, 2011.
January 10, 2011, read first time and referred to Committee on Ways and Means.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) the first two thousand dollars ($2,000) which is received by the individual during the taxable year from a federal civil service annuity, and which is included in adjusted gross income under Section 62 of the Internal Revenue Code; minus
(2) the total amount of Social Security benefits and railroad retirement benefits received by the individual during the taxable year.
However, the individual is only entitled to the deduction provided by this section if the individual is at least sixty-two (62) years of age before the end of the taxable year.
an individual or the individual's surviving spouse who receives
income from a federal civil service annuity is entitled to an
adjusted gross income tax deduction.
(b) For a taxable year beginning after 2015, the amount of the
deduction is one hundred percent (100%) of the federal civil
service annuity received during the taxable year and included in
adjusted gross income under Section 62 of the Internal Revenue
Code minus the total amount of Social Security benefits and
railroad retirement benefits received by the individual or the
individual's surviving spouse during the taxable year.
(c) For a taxable year beginning in 2012 through 2015, the
amount of the deduction is equal to the result determined under
STEP FIVE of the following formula:
STEP ONE: Determine the amount of the federal civil service
annuity received by the individual or the individual's
surviving spouse during the taxable year and included in
adjusted gross income under Section 62 of the Internal
Revenue Code.
STEP TWO: Subtract the total amount of Social Security
benefits and railroad retirement benefits received by the
individual or the individual's surviving spouse during the
taxable year from the STEP ONE result.
STEP THREE: Multiply:
(A) the STEP TWO result by:
(B) for the taxable year beginning in:
(i) 2012, twenty percent (20%);
(ii) 2013, forty percent (40%);
(iii) 2014, sixty percent (60%); and
(iv) 2015, eighty percent (80%).
STEP FOUR: Determine the lesser of the following:
(A) The STEP TWO result.
(B) Twelve thousand dollars ($12,000).
STEP FIVE: Determine the greater of the following:
(A) The STEP THREE result.
(B) The STEP FOUR result.
