Tax exemption for SS

[billmcse]

This is more a question of why the turbotax program is behaving the way it is as well as trying to find the answer as to what is taxable. I live in GA, 60 years old. Last year I received $2996 in SS survivor benefits (spousal).  I enter this in the federal side, everything is fine there. When I get to the state side, it says "Confirm or enter the amount of SS/railroad retirement benefits that is NOT subject to Georgia income tax but was included on your federal return. The amount carried over is $519. Where did turbotax get $519 from? Should it not be $2996? Confused.

[MinhT1]

$519 is the taxable part of your Social security benefits.

Please read this TurboTax blog on the taxation of Social Security benefits.

[billmcse]

But how is $519 taxable when GA does not tax Social Security?

[SteamTrain]

@billmcse 

You need to note that GA starts their tax returns using Federal AGI .  (edited)

And on the federal tax return, not all of the SS distribution was added as being part of your federal gross income...only $519 was included........so, only $519 was initially included in GA income also.

So you enter the $519, as what was included the Federally gross income amount, that will now be removed form GA income.

(i.e., you can't subtract more from GA income, than was included in the first place)

_________________

Now, you should not enter those $$ in the GA section yet, if you have not yet put in every scrap of income in the Federal section...why??? because if you have more income to be entered in the Federal area, the amount of SS that will be included as being taxable may change, and the amount you can subtract for GA income may increase as a result. 

So make sure Federal is Fully filled out...every scrap...before going thru the GA Q&A.

[billmcse]

I have completely filled in my Federal data. I am obviously missing something though because I look at the $2996 in SS benefits, which is taxable at the federal level but according to GA state law, not taxable. As in none of the $2996 should be taxable according to GA state tax law. So the question is still, for me, why isn't the entire $2996 amount not taxable? Or do I just need to put that in by hand?

[SteamTrain]

@billmcse 

Look at your actual form 1040, lines 6a and 6b.

Line 6b is what was included in Federal AGI, not line 6a.

[billmcse]

Ok so that is where the $519 comes from....the federal taxable amount is $519

[Mike9241]

the federal taxable portion is subtracted on schedule 1 of the GA return.