SB 286 Summary

• Amends Indiana Code IC 6-3-2-3.7 to modify the state income tax deduction for federal civil service annuity income, effective January 1, 2015 (retroactive)

• Sets the maximum deduction as the lesser of: (1) the actual 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 in the preceding calendar year

• Reduces the deduction by any Social Security benefits and railroad retirement benefits received by the taxpayer during the taxable year

• Extends the deduction to surviving spouses, with no age requirement for surviving spouses (though individuals must be at least 62 years old to claim the deduction)

• Requires the Indiana Department of Revenue to publish the applicable deduction amount in the Indiana Register annually, with this amendment applying to taxable years beginning after December 31, 2014