Understanding Georgia’s Retirement Income Exclusion
By: Stacey Nickens
In Georgia, retirees and older individuals can shelter some of their income from state taxation. This retirement income exclusion is available to state residents who are 62 years and older as well as some disabled taxpayers.
Georgia’s retirement income exclusion allows qualified taxpayers to exclude certain forms of income from state taxation. These forms of income include interest, dividends, net rentals, capital gains, royalties, pensions, annuities, and the first $4000 of earned income. From the ages of 62 to 64, Georgia taxpayers can exclude up to $35,000 of their retirement income on their state return. Taxpayers who’re 65 or older can exclude up to $65,000 on their return.
If you are married and filing jointly, both you and your spouse can qualify for the income exclusion, provided you meet the above requirements. For example, if both you and your spouse are 65, you could jointly exclude up to $130,000 of retirement income on your Georgia return.
Finally, taxpayers who live in Georgia for part of the year will need to prorate their retirement exclusion.
