Georgia allows a Retirement Income Exclusion on Form 500 Schedule 1 for taxpayers who are:

The maximum retirement income exclusion is $35,000 for those 62-64 (or permanently disabled under 62). For taxpayers 65 or older, the retirement exclusion is $65,000 per qualifying individual. This exclusion is available for both the taxpayer and spouse; however, each must qualify on a separate basis.

Retirement income can include interest, dividends, capital gains, rental income, royalties, pensions, and annuities. Income from property that is jointly owned should be allocated to each taxpayer at 50% of the total value. Up to $5,000 of earned income may be included in the exclusion.

To enter income information for the retirement income exclusion:

TaxAct Online

1. From within your TaxAct return, navigate to the State tab from the side menu.
2. Click Georgia under the State tab to access the Georgia Quick Q&A Topics screen.
3. Click Adjustments to income to expand the category, then click Retirement income exclusion topics and select Retirement income exclusion – Income information.
4. Confirm or adjust the amounts for the retirement income exclusion as necessary

Desktop

1. From within the TaxAct return, navigate to the Q&A tab via the menu bar at the top of the program.
2. Navigate to the State tab and click Continue.
3. Click Yes to start the State Q&A process.
4. On the Review and edit your items for Georgia taxes page, select Retirement income exclusion.
5. Confirm or adjust the amounts for the retirement income exclusion as necessary