When calculating your Georgia retirement exclusion, how do I know how much to allocate between taxpayer and spouse?

[JohnW152]

Income and losses must be allocated to whichever person owns the item (or is the source of the income).  When an item is held jointly, the income or loss needs to be allocated 50% to each taxpayer.

To calculate your respective exclusion amounts, you'll use the computation shown on the Schedule 1 (Page 2), Retirement Income Exclusion, in the Form 500 package.  You'll need to include actual amounts for each spouse for each income category, and allocations as appropriate. 

See RETIREMENT INCOME EXCLUSION and Schedule 1 Page 2) in the 2022 IT-511 Individual Income Tax Booklet for more information.

[theo30066]

I don't see this Georgia Retirement Exclusion Tax Credit in Turbo tax while filing my 2023 Georgia

taxes.

[DawnC]

When you go through the Georgia return, look for a screen that says:  Here's the income Georgia taxes differently.   The first line under Retirement is where you want to click Start.  

@theo30066 

[theo30066]

Turbo Tax only shows Military Retirement Tax Credit.

[theo30066]

Ok, I see that option but it only gives the option to edit the and not start.  It has my retirement withdrawals for the tax year 2023, but they show for the Military Exclusion Tax Credit only.

It shows:  Military Retirement Income Exclusion 

Then the ?:  Did you or Christina receive military retirement income while being residents of Georgia?

But then it doesn't give the option of Yes or No

[DaveF1006]

It depends. if you entered your retirement income in your federal return, the exclusion should automatically apply to your state return.  You should not need to do anything additional. To test the program, I entered a 1099R and treated it as a retirement distributions.

Then I began preparing my Ga state and it appears in a section entitled Here is the Income Georgia Handles Differently. On the top of the section, there should be a heading that says Retirement Income Exclusion/Military Retirement Exclusion with the amount of the retirement distribution you reported in the federal return. Keep in mind, this is not a credit but an exclusion from your Georgia Taxable income.

It is possible that your program may say only Military Retirement Exclusion.  If it does but reflects the correct amount of of your retirement income reported under Here is the Income Georgia Handles Differently, not to worry because it's all the same thing. 

if you are using Turbo Tax Online, it is possible that you may need to clear the cache and cookies in your browser so you will receive the yes or no button asking if you or Christina received military retirement.  I didn't see this in my sample program but stranger things sometimes happen. Here is what the screen should look like if your retirement income was reported correctly. 

[theo30066]

Ok, this is what I am seeing from the last section of your Post Dave.  Thank you for you assistance.