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Posted: 11/17/2011 10:51:14 PM EDT
Can you use the moeny you spend on the buyback as a tax write off?

I've allways used H&R block for my taxes but this year I am gonna do them myself with Turbo Tax.

I am having the moeny taken out fo each paycheck to buy back retirement time from other departments.
Link Posted: 11/18/2011 2:06:34 AM EDT
Bump for the AM crew.
Link Posted: 11/18/2011 2:49:16 AM EDT
I bought back eight years from another department two years ago. The cash out of pocket was substantial.

I asked around and finally talked to IRS, they told me that I could not deduct the buy back money, but I could have it deducted as a percentage from my pension earnings, when the pension paid out. Good luck with that.

I was still worth every penny, even with the tax bite. I'm retired now, and glad I invested the money.
Link Posted: 11/18/2011 2:53:26 AM EDT
Originally Posted By RaynoEleven:
I bought back eight years from another department two years ago. The cash out of pocket was substantial.

I asked around and finally talked to IRS, they told me that I could not deduct the buy back money, but I could have it deducted as a percentage from my pension earnings, when the pension paid out. Good luck with that.

I was still worth every penny, even with the tax bite. I'm retired now, and glad I invested the money.


Thanks!
Link Posted: 11/18/2011 4:26:10 AM EDT
Just to be clear, are we talking about buying retirement credits, or cashing them out?
Link Posted: 11/18/2011 8:02:51 AM EDT
Originally Posted By caexpat:
Just to be clear, are we talking about buying retirement credits, or cashing them out?


Buying back prior years of service.
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