Why is my retirement distribution taxed on federal and not on state? Became disabled in June 2017. Used distribution for living expenses. I was over 59 1/2. Thanks

[cdsable1]

State- GA

[DawnC0 · Accepted solution]

There is no disability exclusion for income tax on retirement income for federal purposes.  However, taxpayers who are 62 or older, or are permanently and totally disabled regardless of age, may be eligible for a retirement income adjustment on their Georgia tax return. 

For married couples filing a joint GA state return with both members receiving retirement income, the maximum adjustment for that year may be up to twice the individual exclusion amount. Retirement income exceeding the maximum adjustable amount will be taxed at the normal rate.  For more information on this state exclusion, click the link below. 

https://dor.georgia.gov/retirement-income-exclusion