GA STATE Return and Retirement Income Exclusion for GA taxable Muni Bond income

[GGG6]

Regarding my GA state return: Line 3 of the Retirement Income Worksheet for Dividends fails to include my out of state Municipal Bond Fund income which is Federally exempt, but taxable to GA. This income is included in my Ga State return, Schedule 1, Line 1 for Interest on Non- Georgia Muni Bonds, as an adjustment increasing GA taxable  income. These dividends are not federally taxable but would otherwise be taxable in GA except for the fact that they should then be able to be included as part of my retirement income, a portion of which could be deducted  up to the point that my retirement income reaches $65,000. Turbo Tax is not picking up this Schedule 1 adjustment the way it picks up other taxable state income. How do I get it to be included in my deductible retirement income on the Retirement Worksheet? Thanks.

[AmyC · Accepted solution]

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

TurboTax Desktop/Download Versions:
Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”
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.
Please provide the Token Number that was generated in the response.

[GGG6]

Thank you Amy. I found a work around by manually entering all dividends including the federally exempt/state taxable muni fund dividends on" the supporting details" sheet linked to line 3 in forms, thus including everything. My only concern is if this would be a red flag since my total dividend income on sched A would exceed my federally taxable dividends, as it includes some federally tax exempt dividend income? Not sure how to get around this, regardless of whether Turbo automatically picked up this income or not, unless there is another line apart from line 3 where this could be entered to distinguish it from federally taxable income?

[GGG6]

BTW, not being very computer savvy, I am reluctant to send the token ring associated with the document I sent to Turbo tax this morning even if the personal data is supposed to

be cleansed.

[AmyC]

1. If the federally exempt income is taxable to the state, then the dividends would be higher on the state. That is not a problem.

2. Ga just needs their share and you have entered it.

3. I understand. Yes, the token does turn your name, accounts, employers, most things into xxxx and your social and other non-relevant numbers into 555.