MILITARY RETIREMENT & STATE SPECIAL PROVISION

[Pavonebl]

I am retired military receiving a pension and am a 100% Service Connected Disabled Veteran. The state of Georgia has a "special provision"  which allows for this retirement income to be adjusted on the Georgia tax return up to $65,000; however, I do not see any option on the TurboTax program that would allow me to make that annotation in order to get this adjustment. Please advise how I can get this done. Thanks!

[DoninGA]

If you are a Georgia state resident then up to $65,000 of retirement income is excluded from state taxation if you are age 65 or older.  Or if you are under age 62 and disabled then the retirement income exclusion is $35,000.  Additionally, the first $4,000 of earned income is excluded from taxation.

If you are under age 62, in the Georgia state program section for Retirement, on Retirement Income Exclusion click on the start button.  The program will ask you if you have a permanent disability that prevented you from working in 2019.  If this your situation then answer Yes.

[Pavonebl]

Thanks you; this is very helpful. The questions states, did you have a permanent disability that prevented me from working in 2019? However, while I am a 100% disabled veteran, I was not prevented from working. I was under the understanding that the special provision for 100% disable veterans was not dependent on ability to work. How would I address this in TurboTax?   

[DoninGA]

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@Pavonebl wrote:

Thanks you; this is very helpful. The questions states, did you have a permanent disability that prevented me from working in 2019? However, while I am a 100% disabled veteran, I was not prevented from working. I was under the understanding that the special provision for 100% disable veterans was not dependent on ability to work. How would I address this in TurboTax?   

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According to the Georgia Code Title 48. Revenue and Taxation § 48-7-27,(a)(5)(D) -

A taxpayer shall be eligible for the exclusions granted by this paragraph only if the taxpayer:

(i) Is 62 years of age or older but less than 65 years of age during any part of the taxable year;  or

(ii) Is permanently and totally disabled in that the taxpayer has a medically demonstrable disability which is permanent and which renders the taxpayer incapable of performing any gainful occupation within the taxpayer's competence;  or

(iii) Is 65 years of age or older during any part of the year

Add Link - https://codes.findlaw.com/ga/title-48-revenue-and-taxation/ga-code-sect-48-7-27.html

[Pavonebl]

Thank you very much!