For Georgia State tax, it is asking for IRA Distribution Previously taxed... and enter IRA Basis Adjustment for me and my wife. What are they looking for?

[Ricecake]

Both what are they looking for and where do I find this information?

[DoninGA]

Prior to 1981, Georgia had not adopted conformity to federal law regarding deductions for contributions to IRA's, Keogh's, SEP's and S Corporation retirement plans.

From 1981 to 1986, Georgia adopted federal law, as it existed on January 1, 1981, regarding those deductions. Therefore, a difference between federal and Georgia law existed when changes were made to federal law during 1981 through 1986.

Georgia allows a subtraction from your plan distributions income equal to the contributions made to the plans during 1981 through 1986 that were not deductible by Georgia.

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

The current year subtraction from income cannot exceed the current year taxable plan distributions received. The total subtractions from income cannot exceed the total plan contributions that were nondeductible for Georgia, but deductible on your federal return during 1981 through 1986.

[bobsteel]

how am I supposed to know what amount to put into the worksheet??  It won't let me leave it blank and it asks the same question for my wife.

[bobsteel]

I did not live in Georgia from 1981 thru 1986.  so this shouldn't apply to me.  However it won't let me file until I enter an amount..

[DoninGA]

Were you a Georgia resident in 1981 thru 1986 and had an IRA, Keogh, SEP or S Corporation retirement plan? 

If not, then back out of that section since it does not apply to you.

[athomealison]

what if they were contributions to a workplace 401k?

[DoninGA]

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@athomealison wrote:

what if they were contributions to a workplace 401k?

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For a 401(k), it does not apply.

[mark199]

My wife and I both contributed to our IRAs in the 1981-1986 time frame and were not GA residents during that time.

We both retired prior to 2020 ending our earned income and IRA contributions.

We moved to GA and became permanent residents in 2020.

If we aren't eligible to use this one time IRA adjustment, why does GA claim to have the right to tax our IRA distributions when none of our earnings, nor IRA contributions, were made while residents of GA?

Can you cite the GA tax law that supports your statement that we can't benefit from the 1981-1986 tax issue;

we can't find any statement supporting your claim.

Mark and Carol

[BillM223]

Line 5 of Subtractions on page 14 of the Georgia IT-511 Income Tax booklet says "5. Individual retirement account, Keogh, SEP and SUB-S plan withdrawals where tax has been paid to Georgia because of the difference between Georgia and Federal law for tax years 1981 through 1986."

It is highly unlikely that you paid tax to the state of Georgia on the contributions to your IRA if you were not residents of Georgia in 1981 to 1986. This subtract is available ONLY to taxpayers who paid tax to Georgia on the amounts contributed to an IRA or similar account.

As for Georgia having the right to tax IRA distributions whose contributions were made in another state, that has been the law in every state since the beginning of 1996 - you owe tax on pensions and IRA distributions in the state where you received the distributions, not where you made the contributions. Please see this Community discussion.

[worth99cbs]

Ga state  tax question.  Previously  taxed Ira distributions. I don't  know how to answer 

[AmyC · Accepted solution]

First, did you contribute to an IRA/ Keogh/ SEP from 1981-1986? 

• If not, leave blank and move on.
• If yes, have you already taken the one time deduction allowed?
  • If yes- you are done, move on.
  • If no - add all your contributions from 1981-1986 and claim the deduction.

@worth99cbs  

[fanfare]

You will need good records showing what you put in over the years, or some way to reconstruct that information.

and what if any you took out and was taxed in the applicable period.