How can i determine what my Georgia teacher retirement adjustment should be for taxed contributions between 1987-1989?

[user24681]

I need to calculate the adjustment amount that should not be taxed. All of the information I read indicates that I should report the adjustment amount contributed between 1987-1989. I cannot find any information instructing me how to complete this calculation. Can anyone assist me?

[DoninGA · Accepted solution]

Does the following pertain to your Teacher Retirement contributions -

Between July 1, 1987 and December 31, 1989, Georgia did not adopt conformity to federal law regarding deductions for contributions to the Teacher Retirement System of Georgia.

Georgia allows a subtraction from your retirement income equal to the contributions made from July 1, 1987 through December 31, 1989 that were not deductible by Georgia.

The purpose of this adjustment to Georgia income is to allow a one-time deduction, as retirement plan distributions are received, of previous nondeductible plan contributions.

The current year subtraction from income cannot exceed the current year taxable retirement distributions received. The total subtractions from income cannot exceed the total retirement contributions that were nondeductible for Georgia, but deductible on your federal return from July 1, 1987 through December 31, 1989.

[user24681]

I understand, however, I am still not clear about how I can calculate the adjustment amount.

[DoninGA]

Did you actually make contributions to the Teacher Retirement System of Georgia during the time-frame of July 1, 1987 through December 31, 1989?

[user24681]

Yes. I have a copy of my member contribution history the shows my salary for each month of the years mentioned.

[DoninGA]

Then you would enter the amount of your contributions that were previously taxed by the state of Georgia during that time-frame.

[user24681]

Thank you for the information. I will try to access that information on the TRS site since I no longer have access to the actual contribution records/ taxable amount.

[cubby3]

If that deduction was claimed the first year of retirement, it can't be counted again...correct?

Turbo tax is wanting to know that amount from me but I don't know why I should have to include it if I already took the "one-time" deduction for those years.

[DianeW777]

You are correct.  You do not want to include any plan cost (your after-tax contributions) to reduce your taxable income in 2020,  if you already recovered that in the 'one-time' deduction at the start of your pension distribution or retirement.

[j1mschafer]

My wife has been retired for 3+ years and we dont have any paperwork, but i am sure her retirement was taxed in those years.  How would i calculate it - like take a percentage like 6% of current retirement payment?

[AmyC]

Your wife has only been retired 3 years and this credit comes from money saved July 1, 1987 through December 31, 1989. I don't believe that 6% of her entire retirement contributions would have been during that small time frame. I believe it is 6% annually. Can you check with the Teacher's Retirement System for pay or information?

Perhaps that 2.5 year window divided by her full years of service would give the most accurate picture then multiply that by 6% for her contributions during that period.

@j1mschafer 

[fdereimer]

How do I determine what my contributions to the Georgia Teacher's Retirement Plan were between July 2017 and December 2019 and how to know if I've already taken the one time deduction?

[DoninGA]

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@fdereimer wrote:

How do I determine what my contributions to the Georgia Teacher's Retirement Plan were between July 2017 and December 2019 and how to know if I've already taken the one time deduction?

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Did you actually make contributions to the Teacher Retirement System of Georgia during the time-frame of July 1, 1987 through December 31, 1989?

[fdereimer]

yes

[DianeW777]

It depends.  You would need your tax records from the date you retired to know if you did take the deduction.  Also, only you and the retirement plan administrators know your contributions during the required timeframe (July 1, 1987 - December 31, 1989.  You should be able to get the records from them if you no longer have them.

Without any proof of your contributions, for the period Georgia (GA) did not adopt conformity to the federal law, it's not likely a deduction would be allowed.

@fdereimer