HB 1165 Summary

• Provides a 100% income tax deduction for federal civil service annuity income received by individuals or surviving spouses beginning in 2016, after subtracting Social Security and railroad retirement benefits.

• Phases in the deduction from 2012-2015 at 20%, 40%, 60%, and 80% respectively of the net annuity amount (capped at $12,000).

• Removes the requirement that recipients must be at least 62 years of age to claim the federal civil service annuity income tax deduction.

• Extends eligibility for the deduction to an individual's surviving spouse, not just the annuity recipient.

• Effective July 1, 2011.