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JamesVDale
New Member

Turbotax has shifted dividend income between taxpayer and spouse in order to maximize Georgia Retirement Income Exclusion. I thought it had to be reported by div owner?

During Federal return processing TT correctly asked who (taxpayer or spouse) earned what dividend income.  I also entered an amount for some US Govt. Interest on the spousal income.  When this transferred over to the Georgia Schedule 1 Retirement income Exclusion worksheet,  the  US Govt Interest was added to the Dividend Income (line 7) of the taxpayer and not the spouse.  It looks like since the spousal dividend income was more than $65k (max amount that can be excluded) TT decided to shift that income to the taxpayer since the taxpayer income was less than $65k, thus giving the taxpayer a great exclusion.  I dont think this is allowed.  The income and US Govt Interest deduction needs to stay with whoever earned it.  Does anyone have an opinion, and if you agree that it is an error, how do I report it to TT?  Many thanks, James
2 Replies
NCperson
Level 15

Turbotax has shifted dividend income between taxpayer and spouse in order to maximize Georgia Retirement Income Exclusion. I thought it had to be reported by div owner?

@JamesVDale - can you please go back and review your post and your data entry one more time (may be worth someone else checking the data entry as well)

 

1) Dividend Income should appear on 7

2) US Government interest is a form of interest and should appear on Line 6 (you state Line 7)

3) please go back and re-confirm that when you entered the Interest and Dividends you indeed clicked who owned the income - husband or wife - correctly..... if "joint" is clicked, then the income will be split 50/50.

 

 

JamesVDale
New Member

Turbotax has shifted dividend income between taxpayer and spouse in order to maximize Georgia Retirement Income Exclusion. I thought it had to be reported by div owner?

Thanks for your reply.  I doubled checked and also tried a couple of things.
Taxpayer as $1032 of dividend income and spouse has $71,982.  $5207 of the spouse's dividend income is from US Govt.
So, just as a test I changed both sources of dividend income to JOINT and TT correctly split the amounts -  $33,903 each on line 7 of the Retirement Income Exclusion form.  Then I changed the $71k source of dividends to taxpayer and the $1k  to spouse, and again TT correctly updated the GA Sched1 - $66775  ($71,982 - $5207) for taxpayer and $1033 for spouse .  But when I changed it back to how it should be, with $71k as spouse and $1k as taxpayer,  TT  now has $6239 for taxpayer (instead of expected $1033) and $61569 for spouse (instead of expected $66,775).  It appears to be moving an additional $5207 from spouse to taxpayer.  Why is it doing this?

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