Retirement Income Exclusion

See the most current Individual Income Tax Instruction Booklet (Form IT-511) for the Retirement and Military Retirement Income Exclusion Worksheet to calculate the maximum allowable adjustment for this year.

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.

Military Retirement Income Exclusion

Beginning January 1, 2022, $17,500 of military retirement income can be excluded for taxpayers under 62 years of age and an additional $17,500 can be excluded for taxpayers with more than $17,500 of earned income in Georgia.

The exclusion is available for the taxpayers and his/her spouse; however, each must qualify on a separate basis. If both spouses qualify, each spouse may claim the amounts above.