Taxable Portion of Civil Service Annuity vs. Military Service Deposit?

Forum|Forum|3 years ago
March 25, 2023
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Hello,

Like another writer, I paid approximately $20K in after-tax salary to effectively credit 20 years of military service toward my civil service retirement annuity. Now receiving monthly civil service annuity payments, Turbotax asks me to report any after-tax contributions I made toward the annuity to determine what portion of my present annuity is taxable. First, for tax purposes, does the after-tax mil deposit I paid qualify as a "contribution" to this annuity? If so, what kind of record does the IRS require to substantiate it? Second, Turbotax asks me if this annuity "covers another individual:" upon my death, my spouse will continue to receive 50% of my annuity. (a survivor benefit which reduces my present annuity by 10%) In this sense, the annuity may eventually cover another individual if my spouse if she survives me. But I am unclear as to how to answer this question when Turbo tax presents it. Any (accurate) assistance would be appreciated!

RobertB4444

For your civil service annuity any contributions that you made that are non-taxable should be shown in box 5 and will reduce the amount in box 2a. So, if the contributions reduced your taxable amount box 2a will be less than box 1.

The question about the other individual is more for those who have former spouses being covered by their annuities and things like that. Who the annuity covers after you pass is not what the question is asking so go ahead and say no.

@NiCd

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