Do seniors over 70 have to pay state tax on pension in state of georgia ?

[JamesG1 · Accepted solution]

Seniors in Georgia over 70 may have to pay state tax on some of their income but there is a Georgia Retirement Income Exclusion.

The maximum Retirement Income Exclusion is $65,000 for taxpayers who are 65 years of age or older.  See the Georgia Department of Revenue here. 

The exclusion is available for the taxpayer and his/her spouse; however, each must qualify on a separate basis. If both spouses qualify, each spouse may claim the amounts above. 

Income from property that is jointly owned should be allocated to each taxpayer at 50% of the total value. 

Up to $4,000 of the maximum allowable exclusion may be earned income. 

Retirement income includes:

• 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

TurboTax will compute the Retirement Exclusion at the screen We found a Georgia tax break for you in the Georgia state income tax return.