This expands a little on Don's comments:
Georgia Teacher's
Retirement Adjustment
The State of Georgia allows for a one
time
Teacher Retirement Subtraction from Georgia Income. Before entering this
amount in the program, please read this article to see if the
qualification has been met.
In January of 1990, the Georgia Department of Revenue
created a 'tax recovery adjustment' for TRS member contributions made from July
1, 1987 through January 1, 1990. During that period, member contributions
were sheltered from federal income tax, but not Georgia state income tax.
Thus, a member's contributions and pension were taxed by the State of
Georgia. The Georgia Department of Revenue allowed TRS members, who
contributed to TRS from July 1, 1987 through January 1, 1990, to 'recover' the
taxes paid on those contributions when they filed for their state taxes.
At retirement all retirees receive this important information at the time they
receive their first benefit check. TRS members eligible for this recovery
adjustment will receive, along with their first benefit check, a letter that
provides the total dollar amount of TRS contributions made during this time
frame so members can document the adjustment on their state tax returns.
For example, a member who retired on July 1, 1998 received this important
tax information with his/her first retirement check. In early 1999, when
the retiree filed his or her state taxes for 1998, the adjustment would have
been included. To be clear, the amount shown in the letter you received
is not the amount you are owed by the Georgia Department of Revenue, but is the
amount of money from which you can recover taxes paid on it. If you
already received your adjustment, then you are all set. If you did not
claim the adjustment, please contact the Georgia Department of Revenue directly
to find out if you are still eligible.
