New Georgia State Income Tax Exclusion for Military Pension

[Mojo117]

The Ga. General Assembly passed a tax exclusion for military pension income last spring. The exclusion has a floor of $17,500, but can climb to $35,000 if the recipient of the pension continues working in another career and earns more than $17,500. TurboTax Deluxe 2022 does not seem to be giving me the full exclusion, although I am still working a civilian job and making more than the amount required to get my exclusion up to $35,000. Since this is a new provision in state law, it's possible that TurboTax staff has misinterpreted it. I've tried to find some way to write them to let them know, but have had no luck.  I'm posting here in hopes that they see it and can check the program and ensure that it accurately applies the new Georgia law.

Thank you.

[DoninGA]

Look at the Georgia Schedule 1 Page 3 for the military retirement income exclusion.   If you are under age 62 and have entered military retirement income reported on Form 1099-R the program should calculate your exclusion correctly up to $35,000.

Use the TurboTax desktop editions click on Forms.  When in Forms mode in the Georgia section open Schedule 1.

[Mojo117]

Thanks, Don. The program does have this all accounted for. I jumped the gun and hadn't entered all of my estimated entries for my W-2. I'm all for paying my share, but this exclusion is going to come in handy until I turn 62 and become eligible for the exclusion that all Georgians get on retirement income. Thanks for your quick response!

[prgirl62]

I am totally confused.  I cannot find sch1 as posted.  Also, I do not see where the deductions are being made for my husbands military retirement exemption.  He's 59 and after getting out, he has continued to work and has made more that the 17.500....please help....

[DoninGA]

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@prgirl62 wrote:

I am totally confused.  I cannot find sch1 as posted.  Also, I do not see where the deductions are being made for my husbands military retirement exemption.  He's 59 and after getting out, he has continued to work and has made more that the 17.500....please help....

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Did you enter or have you received the military retirement Form 1099-R?

In the Georgia state program, in the section for Income, on the screen labeled Here's the income that Georgia handles differently under the Retirement section, have you reviewed the Retirement Income Exclusion/Military Retirement Exclusion?

[prgirl62]

I just found the sch 1, yes, it did tally amount, but did not subtract it from my total income...so again Im confused, we qualify.  Am I missing something?

[DoninGA]

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@prgirl62 wrote:

I just found the sch 1, yes, it did tally amount, but did not subtract it from my total income...so again Im confused, we qualify.  Am I missing something?

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On the Georgia Schedule 1, what is the amount shown on page 3 of the Schedule 1 on Line 8? 

The amount from Line 8 on page 3 flows to Schedule 1 page 1 Lines 7b.  The total from Schedule 1 Line 14 (a negative amount (-)) flows to the Georgia state tax return Form 500 Line 9 as a negative amount.  This is the exclusion amount.

What is shown on Form 500 Line 9?

[prgirl62]

Good afternoon, Ok so the only thing i see tallied in negative, is the amount for my ssn, I do not see, the 3500 from the military retirement exclusion. He meets the guidelines.  He is under 62, retired and continues to work and makes more than 17,000 in his current job.  What am I missing? Help, this is so frustrating...on sch 1 page three it shows 3500.  Now on the taxable 1. sch 1 page 3, there is no number there...

[prgirl62]

Ok somehow i got it!  My program didn't figure it out, until i put the date of birth and crossed my X box, to verify birthdate and that I qualified against the questions.....oh boy...that was a trip....lol

[DoninGA]

Did you enter or have you received the military retirement Form 1099-R?

You Must enter a Form 1099-R which has military EIN entered on the form before the Georgia Military Retirement Exclusion can be calculated. 

In the Georgia state program you will be asked about the Military Retirement Income Exclusion.  If you did not complete that screen the program cannot calculate the exclusion.