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wyre  
#1 Posted : Wednesday, April 8, 2020 11:43:57 AM(UTC)
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This is the first year I"ve filed a return with a civil service pension.

I've been told DC exempts $3000 of our federal pensions -- cant find a place to put it on my return, unless it's considered a "subtraction" that is not taxed in DC but is taxed on Federal.
It asks about "survivor benefits" but doesn't specifically reference the regular pension exclusion.I'm not positive if Turbo Tax automatically deducts it (doubtful)
or if we have to enter that manually. Anyone know for sure? It's not much, but I'd like to take advantage of the benefit.

Thanks!
postalvet  
#2 Posted : Wednesday, April 8, 2020 5:12:35 PM(UTC)
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Originally Posted by: wyre Go to Quoted Post
This is the first year I"ve filed a return with a civil service pension.

I've been told DC exempts $3000 of our federal pensions -- cant find a place to put it on my return, unless it's considered a "subtraction" that is not taxed in DC but is taxed on Federal.
It asks about "survivor benefits" but doesn't specifically reference the regular pension exclusion.I'm not positive if Turbo Tax automatically deducts it (doubtful)
or if we have to enter that manually. Anyone know for sure? It's not much, but I'd like to take advantage of the benefit.

Thanks!


i would believe when you do your state tax for DC (DC is handled like a state for taxes) turbo tax will figure ot out for you. if not call the turbo tax hotline https://turbotax.intuit....4fD_BwE&gclsrc=aw.ds




DC tax rules
http://www.retirementegg...states/dc-retirement.php

Edited by user Wednesday, April 8, 2020 5:13:19 PM(UTC)  | Reason: Not specified

wyre  
#3 Posted : Wednesday, April 8, 2020 5:51:13 PM(UTC)
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Thanks! I thought this was the case - as mentioned in many articles, including the one you cited ...

“The District of Columbia does not tax Social Security benefits. Most pension, IRA, and annuity income is taxed by the District. Every resident of the District can deduct $3,000 of pension, annuity, military retirement, and other retirement income from his or her district taxes. All other retirement income will be taxable in the district.”

But I just read that they repealed it in 2015! Lots of sites still saying it’s in effect, so will have to dig further , but I think the reason I couldn’t find it is because it’s not part of the tax law any longer. Sad!!!

“ Pension Exclusion Repealed: The up to $3,000 exclusion from federal adjusted gross income of military, DC, or federal retirement payments of retirees 62 years or older, has been repealed.”

https://cfo.dc.gov/sites...m%20Summary%20022618.pdf

Haven’t found anything more recent to suggest it’s been reinstated, but if anyone has info ... please let us know. It was about a $300 tax differential ... considering how many other states don’t tax pensions at all, it’s surprising they repealed it. Too many feds in DC , I guess ? It’s mosyly an issue for CSRS , since we don’t generally get social security ( which DC doesn’t tax)

Edited by user Wednesday, April 8, 2020 6:01:37 PM(UTC)  | Reason: Added url

EngineerJim  
#4 Posted : Friday, April 10, 2020 6:26:58 AM(UTC)
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Check the DC tax forms and instructions (D-40):
https://otr.cfo.dc.gov/node/1450376
My quick scan didn't show any pension deduction amounts. They tax from the Federal AGI. That includes the taxable amount of your Federal pension. The taxable amount (Federal form) is most of your pension and is shown on your 1099-R
thanks 1 user thanked EngineerJim for this useful post.
wyre on 4/10/2020(UTC)
wyre  
#5 Posted : Friday, April 10, 2020 9:06:01 AM(UTC)
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Thanks for the follow up! It was repealed a few years ago and not (yet) reinstated — it would be nice if they did, but not holding my breath on that one! I guess they figure SS exemption is sufficient, but that doesn’t take into account CSRS retirees, who also are subject to the WEP penalty if they did earn enough outside federal service to be eligible for social security. Kind of a lose -lose situation tax wise , but in difficult times like this, still happy to have that pension!
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