If my distribution exceeds $20,000 but my spouse’s distribution is less than $20,000, can we deduct up to $40,000 on our joint income tax return?
No. The income tax deduction is limited to the benefit amount received by each person. For example, if you receive distributions of $25,000, you can deduct $20,000. If your spouse receives $15,000 in benefits payments, an additional $15,000 can be deducted, for a combined total deduction of $35,000. You cannot claim any unused portion of your spouse’s deduction.
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