State Return Question: Work Injury

[bradform]

I'm out on workers comp since October and likely won't be able to return to work. When filing the Georgia state return, I get the folllowing question. "If you couldn't work last year because you were permanently disabled, Georgia may give you a tax break called the retirement exclusion." Should I answer yes or no?

[MayaD]

If you are permanently and totally disabled you may qualify for an income tax exclusion up to $35000. Answer Yes to the question in TurboTax.

Retirement Income Exclusion

Taxpayers who are 62 or older, or permanently and totally disabled regardless of age, may be eligible for a retirement income adjustment on their Georgia tax return. Retirement income includes:

• Income from pensions and annuities
• Interest income
• Dividend income
• Net income from rental property
• Capital gains income
• Income from royalties
• Up to $4,000 of earned income

For married couples filing joint returns with both members receiving retirement income, the maximum adjustment for that year may be up to twice the individual exclusion amount. Retirement income exceeding the maximum adjustable amount will be taxed at the normal rate.

GA Department of Revenue