Solved: Louisiana does not tax income from teacher retirement. I live in Georgia. Do I need to pay Georgia state tax on Louisiana retirement income?
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teddybearheidi1
New Member

Louisiana does not tax income from teacher retirement. I live in Georgia. Do I need to pay Georgia state tax on Louisiana retirement income?

 
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ToddL
New Member

Louisiana does not tax income from teacher retirement. I live in Georgia. Do I need to pay Georgia state tax on Louisiana retirement income?

Unfortunately, if you live in GA now then you may owe tax on a retirement from LA - even if LA wouldn't have taxed it.  

Effective for retirement income received after December 31, 1995, federal law prohibits any state from taxing certain retirement income (mainly pension income) unless you are resident of or domiciled in,that state. 

For example, if you receive a pension from your former Louisiana employer and you now reside in Georgia, any Louisiana tax breaks on that retirement no longer apply. Because you are now a Georgia resident, your retirement income is taxable under Georgia tax laws.

Georgia does, however have a Retirement/Disability Income Exclusion

For tax year 2017, the maximum retirement income exclusion is $35,000 for taxpayers who are:

(A) 62 - 64 years of age or

(B) less than 62 and permanently disabled to such an extent that they are unable to perform any type of gainful employment.

The retirement exclusion is $65,000 if the taxpayer is 65 or older. 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.

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ToddL
New Member

Louisiana does not tax income from teacher retirement. I live in Georgia. Do I need to pay Georgia state tax on Louisiana retirement income?

Unfortunately, if you live in GA now then you may owe tax on a retirement from LA - even if LA wouldn't have taxed it.  

Effective for retirement income received after December 31, 1995, federal law prohibits any state from taxing certain retirement income (mainly pension income) unless you are resident of or domiciled in,that state. 

For example, if you receive a pension from your former Louisiana employer and you now reside in Georgia, any Louisiana tax breaks on that retirement no longer apply. Because you are now a Georgia resident, your retirement income is taxable under Georgia tax laws.

Georgia does, however have a Retirement/Disability Income Exclusion

For tax year 2017, the maximum retirement income exclusion is $35,000 for taxpayers who are:

(A) 62 - 64 years of age or

(B) less than 62 and permanently disabled to such an extent that they are unable to perform any type of gainful employment.

The retirement exclusion is $65,000 if the taxpayer is 65 or older. 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.

View solution in original post

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