Tax exemption for SS

Forum|Forum|3 years ago
February 2, 2023
7 replies
19 views

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

Level 15

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

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

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billmcseAuthor

Level 4

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

SteamTrain

Level 15

@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)

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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.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*