Commutative Property. An operation is commutative if you can change the order of the numbers involved without changing the result. Addition and multiplication are both commutative. Subtraction is not commutative: 2 - 1 is not equal to 1 - 2. Here are some examples of the commutative properties of addition and multiplication: 88 + 65 = 65 + 88. 153 = 153.
Another consideration is that SBP premiums reduce the retiree's taxable income and reduce out-of-pocket costs for coverage. SBP benefits are taxed as income to the survivor however the tax rate upon receipt of the annuity will generally be less than the member's current tax rate. Most insurance plans are the reverse; premiums are paid from after-tax income, while survivors are not taxed on the proceeds.
Social Security (FICA) and Medicare Deduction A taxpayer may claim a deduction for the amount contributed in the taxable year to FICA or a Railroad Retirement Plan, or to a U.S. or Massachusetts Retirement fund up to $2,000. Medicare premiums deducted from social security benefits or retirement payments are not an allowable deduction since the benefits are not included in gross income. 2  Nonresidents and part-year residents may claim this deduction only if it is directly related to taxable income reported on Form 1-NR/PY.