Why is GA state not exempting my military retirement? I am 62.

[sunshinegirl327]

This is what the direction says: Military Retirement Income Tax Exemption Veterans who retired from the military and are under 62 years of age are eligible for an exemption of up to $17,500 of military retirement income. An additional exemption of up to $17,500 is available for veterans under 62 who have at least $17,500 of earned income. Veterans ages 62 to 64 are eligible for Georgia's existing retirement income tax exemption for up to $35,000. Those over the age of 65 are eligible for an exemption of up to $65,000. https://veterans.georgia.gov/military-retirement-income-tax-exemption TurboTax GA is saying that because I am over 61 the exemption doesn't apply. The software is working WRONG!

[DavidD66]

Since you are age 62 you are eligible for the general exemption of up to $35,000 of retirement income.  The military specific exemption no longer applies.  Are you saying that TurboTax is not applying the exemption to your military retirement?

[sunshinegirl327]

That is exactly what I am saying.
When it thinks I am 61, my return is $500 dollars greater than when it says that I am 62+.  

[Chas B]

I’m having the same problem; I’m retired military and age 65. TurboTax tells me I’m not eligible for the military retirement exemption because I’m over 62.

[SusanY1]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response. (A screenshot works best)

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.  (A screenshot works best.)

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

@Chas B 
@sunshinegirl327 

[sunshinegirl327]

I have sent you the file as requested.

The token is:  

Thank you,

Anne Goulart

[SusanY1]

Thank you for sending the file over.  If you are still seeing the message, I believe it is just a display message error.  On the actual Georgia tax form I can see the exclusion is being properly applied.  

If you are using TurboTax online, you will be able to see this adjustment in the Georgia Summary before you pay for the return.  However, you will see this combined with any other adjustments. 

You can see the full return after you pay (and before you file).  You will see the subtraction on Georgia Schedule 1, Line 7b.

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

1. Select Tax Tools 
   
2. On the drop-down select Tools 
3. On the pop-up menu titled “Tools Center”, select View Tax Summary 
4. On the left sidebar, select  GA Summary

[sunshinegirl327]

Susan,

With all that in mind, why then does it prompt me about military exclusion?  If I answer yes, my return from Georgia increases by about $500.... until I do the review and then it makes my uncheck the boxes.  
Why if I was under 62 does that happen?  

In the meantime, I'll go ahead and file my taxes.  It is just very troublesome.

Thanks,

Anne Goulart

[sunshinegirl327]

Susan, this is the area I am talking about.  What is it about being 61 and receiving a military retirement that changes the amount being sent back?

Anne Goulart

[SusanY1]

What is changing the refund here is that when this box is checked, TurboTax is giving you two exclusions. 

It's excluding the retirement income twice, plus the $5,000 of earned income to which you're entitled under the Retirement Income Exclusion .  

This year, because you turned 62, the military retirement exclusion no longer applies, but the "regular" retirement exclusion applies instead. 

The prompt is confusing in your case and I will request that we improve that portion of the program based on your input and feedback. 

Thank you for sending this additional information - that helped me to see better what the issue was from your point of view.  






 

[dbhester]

I turned 62 in 2024 tax year.  The GA State form is showing 3 amounts that contribute to a tax credit on retirement income:

1) Inherited 401K Distribution to my wife (who was only 60 in 2024 and should not qualify)!

2) Backdoor Roth IRA contribution (fully rolled over in 2024) for 8000 for my wife (which should not generate a credit.

3) Backdoor Roth IRA contribution (fully rolled over in 2024) for 8000 for me (which also should not generate a credit).

It is putting a $35000 income exclusion on my return against GA Final taxable income.  This is totally wrong, and I can't get it out of there.  Every time I delete the form "Schedule 1", it comes back.  Please help.  The Georgia state is unusable right now!!!!

Regards,
Dave