GA State Taxes and Social Security/RR exemption

[Jeanie Beanie]

We have nothing complicated about our taxes.  We get pensions and Social Security.  We are both over age 65.  This year while preparing 2022 tax return, upon review it asks for confirmation for the "Railroad" exemption and it's listed (I think) in addition to the standard GA exemption.  

The deductions are broken down as:  Retirement Exclusion $65k, RR Retirement $39894.  No where have I marked anything referring to RR Retirement, nor can I link that number to anything relative to our situation. 

If I let it remain in the software, we have a small refund.  If I change the RR amount to zero, we owe about $2500 to state.  

Why is this autofilled by TurboTax in this amount when I have no reference to RR Exclusion.

The explanation is as follows: 

Social Security/Railroad retirement benefits

Social Security benefits are exempt from Georgia income up to the amount that was subject to tax on your federal return.

Railroad Retirement benefits are also exempt from Georgia income up to the amount that was subject to tax on your federal return.

If you used a Form 8915 to adjust your Railroad Retirement benefits on your federal return, this may impact how much you report on your Georgia tax return.

[JohnW152]

See if, somehow, information was mistakenly entered.  You’ll go into the federal portion of TurboTax to try and find a mistake.

To look for and possibly delete a Form RRB-1099 (the railroad equivalent of Social Security) in TurboTax Online:

1. If you don’t see 2022 TAXES in the left pane, select the dropdown to the right of Income & Expenses on the Hi, let’s keep working on your taxes! page and then select Let’s get started, Pick up where you left off, or Review/Edit
2. In the left pane, select Federal, then Wages & Income 
   • This is labelled Income & Expenses in TurboTax Self-Employed
3. Scroll down and select the Show more dropdown to the right of Retirement Plans and Social Security
4. Select Start or Revisit to the right of Social Security (SSA-1099, RRB-1099)
5. Answer Yes on the Did you receive Social Security or Railroad Retirement benefits in 2022? page 
6. Proceed through the pages and see if a mistaken form was input.  You’ll be able to delete it if it was

If it was somehow input as Form RRB-1099-R – an annuity from the Railroad Retirement Board – it could have been entered like a regular 1099-R. 

To look for and delete a possible RRB-1099-R in TurboTax Online:

1. If you don’t see 2022 TAXES in the left pane, select the dropdown to the right of Income & Expenses on the Hi, let’s keep working on your taxes! page and then select Let’s get started, Pick up where you left off, or Review/Edit
2. In the left pane, select Federal, then Wages & Income 
   • This is labelled Income & Expenses in TurboTax Self-Employed
3. Scroll down and select the Show more dropdown to the right of Retirement Plans and Social Security

Select Start or Revisit to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R).  Proceed through the pages and see if a mistaken form was input.  You’ll be able to delete it if it was

[Jeanie Beanie]

Yes!  I actually found the answer myself with a little research and confirmed the calculation by going into the various schedules used on the federal taxes within the TurboTax program.  But it's good to have this validation from you, an expert!  I think the confusion came in when the program dropped the "SS" designation and only showed the "RR" description which I am not eligible for, but later saw that SS/RR are the correct descriptors, we definitely are due the credit in Georgia State Taxes that were taxed on the Federal form.  

So, I am happy and thank you for your response.

[PAJ88]

May I also ask about this question? My husband retired at the start of 2022 and receives both social security and a pension from his previous employer (not a railroad- his pension is from a corporation). In the GA state tax area, TurboTax automatically filled in an amount for both boxes of "Retirement Income Exclusion/Military Retirement Exclusion AND of "Railroad Retirement Benefits". Since he did not work for a railroad, shouldn't that number be $0 (which changes the GA refund amount significantly)? And, is there somewhere else in the software that handles his pension amount - isn't that amount also excluded from GA taxes? Finally, per your previous answer, I did look back at the Income section - I do see the 1099-R entered correctly and the box 1099-RR is NOT checked, since he didn't receive that form. In summary, how do I handle both the social security amounts and the pension amounts correctly in the GA state tax return section of TurboTax Home & Business (laptop version)?

[DoninGA]

@PAJ88 On the Georgia state tax return screen labeled Here's the income that Georgia handles differently, the Railroad Retirement Benefits is mis-labeled.  It should say Social Security/Railroad Retirement Benefits.  If you had taxable Social Security benefits on the federal tax return the amount excluded will be shown.

If you click on the Edit button you will see in the explanation it is for Social Security/Railroad Retirement benefits that is not subject to Georgia income tax

[PAJ88]

Thank you - I do see that. But that exclusion is only for social security, correct? What about the pension amount, shouldn't a portion of that be excluded also?

[DoninGA]

Yes, the exclusion is only for your taxable Social Security. 

If a taxpayer received a Form RRB-1099-R for railroad benefits the taxable amount of those benefits would be entered on that line also.

The taxable pension payments should be shown on the line Retirement Income Exclusion/Military Retirement Exclusion.

Georgia has a special exclusion for taxable military retirement payments for taxpayer's under the age of 62 so that exclusion would also be included on that line.

[PAJ88]

Thank you! I think I understand now - I appreciate the help of all of you -