No, you shouldn't manually change Line 7a of Schedule 1 in Form GA 500. Georgia begins with your federal adjusted gross income, which includes only the taxable portion of your IRA distribution. Since your federal return already reduced the distribution for basis, that lower amount correctly flows to Line 7a.
The separate $4000 GA subtraction is handled on Line7d as a state adjustment. This adjustment prevents the basis from being deducted twice.
There's no need to override or manually adjust the worksheet, the calculation is correct.
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