Georgia retirement income exclusion line 11 is mixing up values for the taxpayer vs spouse and cannot be fixed when one has a line 12 pension also.

Forum|Forum|2 years ago
March 14, 2024
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The Georgia Retirement Income Exclusion lines 11 and 12 are wrong, because the Inc/Ret worksheet is Assigning the Taxpayer amount to the Spouse column, and spouse amount to the taxpayer column. Editing the Inc/Ret Wks worksheet does not fix the form if either one also has a Taxable Pension. Taxable IRA distributions, Schedule 1 line 11 and Taxable Pensions Schedule 1 Line 12, are summed and are collected as single line on the worksheet (Why? this only leads to confusion and errors!) so you can't enter those separately. On the worksheet if I correct IRA Distribution for the taxpayer who does not have a pension, the form will have the correct taxpayer amount. On the worksheet if I enter the Spouse's sum of the correct IRA Distributions + pension, when it prints on the Schedule 1 Retirement Income Exclusion form, the values for IRA and Pension values are wrong although their sum is correct. I'm worried this will flag as an error at the GA tax center because Form 500 has the 1099R data for IRA distributions and the amounts will not match.

DawnC

Employee

Go back and check your 1099-R entry and make sure it is assigned to the correct taxpayer. Go back to the federal return and check all your 1099-Rs there. Search for 1099R and the jump to link will take you to the retirement summary. Click on edit next to each of them and make sure they are assigned correctly.

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pjanas1Author

The first thing I did before reporting this was to verify each 1099Rs step-by-step and its' internal form for each 1099R. All are correct. Recall, the totals on the worksheet are correct but they are reversed + the pension. I would have had to assign every IRA 1099R to the wrong person for that to be the cause. Data entry error also doesn't explain why TTax is changing the Pension Value. If the worksheet were to collect Taxable IRA Distributions and Taxable Pension separately, as presented on the GA Schedule 1 Exclusion form for filing, this error could have been correctable. The coding error may have something to do with the pension(s) owner. Have your testers try assigning the pension to Taxpayer rather than Spouse to see if the error flips to the Taxpayer.

pjanas1Author

The error was mine. Both taxpayer and spouse have the same amount of IRA distributions, total on 1040-line 4a. The taxable portions are not the same and I reversed that assignment when figuring "Taxable Amount" Form 1040 -4b for each. I apologize for taking your time.