State of Georgia Retirement Income Exclusion

Forum|Forum|5 years ago
March 15, 2021
3 replies
26 views

With the GA State Tax Retirement Income Exclusion, can a disabled person claim this if he/she works part-time?

Not A Product Question

BillM223

Level 15

Yes, sort of.

The GA State Tax Retirement Income Exclusion is meant primarily to apply to "retirement" income. The State defines this as:

Income from pensions and annuities
Interest income
Dividend income
Net income from rental property
Capital gains income
Income from royalties
Up to $4,000 of earned income

(see this Georgia webpage).

So, in your case, you can exclude up to $4,000 of your part-time income.

TurboTax ought to do this automatically for you.

Make sense?

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KHB 12Author

Level 2

Thanks for your help!

I have an additional question though... I am helping a friend prepare his taxes, using Turbo Tax, of course. He is disabled and received Social Security Disability Income. However, he did work part time in 2020, earning under $4,000. How do I answer this screen for the State of Georgia taxes?

Do you have a permanent disability that prevented you from working in 2020?

The only options are "Yes" or "No."

Thanks in advance for your help!

DMarkM1

Alumni - Intuit

It appears he would answer "no" to that question since he worked. However, my question is does a GA return or FED return need to be filed? If there is no other income besides the part-time ($4000) then the SSDI would not be taxable and the remaining income is below the federal and GA filing thresholds.

If 1/2 of SSDI added to all other income is below $25,000 then the SSDI is not taxable. Once that is excluded and the rest of the income is below the standard deduction (12400 federal) and GA income is below 7,300 then a tax return is not required.

Perhaps there was some tax withholding that he is trying to get refunded? If so, filing is correct. However, he should get withholding stopped so there will not be a need to file taxes in future years.

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