Why is GA state not exempting my military retirement? I am 62.

Forum|Forum|1 year ago
March 26, 2025
4 replies
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This is what the direction says: Military Retirement Income Tax Exemption Veterans who retired from the military and are under 62 years of age are eligible for an exemption of up to $17,500 of military retirement income. An additional exemption of up to $17,500 is available for veterans under 62 who have at least $17,500 of earned income. Veterans ages 62 to 64 are eligible for Georgia's existing retirement income tax exemption for up to $35,000. Those over the age of 65 are eligible for an exemption of up to $65,000. https://veterans.georgia.gov/military-retirement-income-tax-exemption TurboTax GA is saying that because I am over 61 the exemption doesn't apply. The software is working WRONG!

TurboTax Online

DavidD66

Since you are age 62 you are eligible for the general exemption of up to $35,000 of retirement income. The military specific exemption no longer applies. Are you saying that TurboTax is not applying the exemption to your military retirement?

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sunshinegirl327Author

That is exactly what I am saying.
When it thinks I am 61, my return is $500 dollars greater than when it says that I am 62+.

SusanY1

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response. (A screenshot works best)

TurboTax Desktop/Download Versions:

Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number (including the dash) that was generated in the response. (A screenshot works best.)

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

@Chas B
@sunshinegirl327

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Chas B

I’m having the same problem; I’m retired military and age 65. TurboTax tells me I’m not eligible for the military retirement exemption because I’m over 62.

SusanY1

What is changing the refund here is that when this box is checked, TurboTax is giving you two exclusions.

It's excluding the retirement income twice, plus the $5,000 of earned income to which you're entitled under the Retirement Income Exclusion .

This year, because you turned 62, the military retirement exclusion no longer applies, but the "regular" retirement exclusion applies instead.

The prompt is confusing in your case and I will request that we improve that portion of the program based on your input and feedback.

Thank you for sending this additional information - that helped me to see better what the issue was from your point of view.

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dbhester

I turned 62 in 2024 tax year. The GA State form is showing 3 amounts that contribute to a tax credit on retirement income:

1) Inherited 401K Distribution to my wife (who was only 60 in 2024 and should not qualify)!

2) Backdoor Roth IRA contribution (fully rolled over in 2024) for 8000 for my wife (which should not generate a credit.

3) Backdoor Roth IRA contribution (fully rolled over in 2024) for 8000 for me (which also should not generate a credit).

It is putting a $35000 income exclusion on my return against GA Final taxable income. This is totally wrong, and I can't get it out of there. Every time I delete the form "Schedule 1", it comes back. Please help. The Georgia state is unusable right now!!!!

Regards,
Dave