Why isn't Turbo Tax using Georgia IT-511? It must have been used with 2020 tax return.
Where are you seeing the problem with the Retirement Income Exclusion in the Georgia program?
TurboTax uses the Georgia tax code.
Turbo Tax is only crediting $57817 for senior tax exemption and the State of Georgia shows it should be $65000. When I apply the SS and Retirement income to the Smartasset website, the Georgia tax should be approx $500 less. Why is TurboTax only using the $57817 deduction?
The exemption is found under Georgia state income "Here's the income that Georgia handles differently" "Retirement Income Exclusion" For both of us over 65 it should be $130,000 and only shows $57,817. In 2020, we had slightly more income and didn't have to pay Georgia tax. Georgia also doesn't charge tax on SS.
Here is a way to calculate it per Georgia tax.
https://smartasset.com/retirement/georgia-retirement-taxes#1y6ES8PcZO
@fly170 wrote:
Turbo Tax is only crediting $57817 for senior tax exemption and the State of Georgia shows it should be $65000. When I apply the SS and Retirement income to the Smartasset website, the Georgia tax should be approx $500 less. Why is TurboTax only using the $57817 deduction?
The Georgia Retirement Income Exclusion is up to $65,000 for a taxpayer age 65 or older. It is Not a flat $65,000 just because you are age 65 or older. The exclusion is based on your taxable income from the Federal tax return that can be excluded.
For example assuming age 65 or older - Interest income $1,000, Dividend income $500, taxable Social Security benefits $10,000, Pension Income (Form 1099-R) $30,000. That would total $41,500 of taxable income that would be excluded on the Georgia tax return.
Look at the Georgia Schedule 1 for the breakdown of the exclusion amounts.
I do appreciate your responses. I am able to look at the 2020 schedule 1 and until I pay Turbo Tax I am not aware of how to look at 2021 schedule 1. Our income is down by a few thousand from 2020. I may need to manually do my taxes to see if I can find a difference. I am also running the numbers on a competitor's system to see what that shows.
I have a joint taxable account and would like to allocate the capital gains 50/50 between my wife and myself. Turbo Tax Georgia state tax program has allocated it unevenly in the income and retirement worksheet, pg. 2 and I cannot figure out a way to change this. Can you help!
Thanks, I understand that. But capital gains is one of the categories along with the ones you mentioned. Since my capital gains originate from one taxable account that is jointly owned, why should I not be able to allocate it evenly with my wife?
@Callawaydisco3 wrote:
Thanks, I understand that. But capital gains is one of the categories along with the ones you mentioned. Since my capital gains originate from one taxable account that is jointly owned, why should I not be able to allocate it evenly with my wife?
You can allocate the Capital Gains evenly. In the Georgia program on the screen Here's the income that Georgia handles differently Edit the Retirement Income Exclusion. The Capital Gains will be entered on your name. You can divide the gains as needed for you and your spouse since both of your names are shown.