SB 324 Summary

• Increases the income tax deduction for federal civil service annuity income from $2,000 to $25,000 for individuals and to $32,000 for married couples filing jointly who both receive such income, effective January 1, 2013.

• Caps the income tax deduction for Social Security and railroad retirement benefits at the same amounts ($25,000 for individuals, $32,000 for married couples), replacing the current 100% deduction.

• Limits the federal civil service annuity deduction to taxpayers who are at least 62 years old by the end of the taxable year, and requires both spouses to meet the age requirement for married couples filing jointly.

• Makes technical corrections to the Indiana Code provisions governing adjusted gross income calculations for individuals, corporations, insurance companies, and trusts/estates.

• Applies to taxable years beginning after December 31, 2012.