What number do I use on my Georgia Tax return when it asks
Contributions to your teacher's retirement paid between July 1, 1987 and December 31, 1989 may have been taxed by the state of Georgia. If so, a portion of your retirement received during 2017 may not
be taxable.
Do I put the entire Taxable amount? or do I subtract the taxable amount from the gross distribution?
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You would input the total of the contributions you made between July 1,1987 and December 31, 1989. If you are eligible, you should have received a letter, along with your first benefit check, indicating the total dollar amounts you contributed during this time frame.
Please see below for more information.
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.
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