Georgia teacher retiree filing Virginia taxes

Forum|Forum|3 years ago
February 25, 2023
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Georgia teacher under TRS retired and moved to Virginia. Filing Virginia state taxes. It asked Have you ever lived outside Virginia? Answer Yes It ask Did you make contributions to a retirement plan when you did not live in Virginia? Answer Yes. The the one I don't know how to answer. State Nondeductible contributions, These contributions weren't taxed on your federal return. Did your state tax your contributions? If I answer no it goes back to the main Virginia income screen. I f I answer yes it says I get a Virginia Deduction. It says If any of your retirement income is from an account created when you lived in another state, and represents a return of contributions that were deductible for federal purposes and nondeductible in the state where you lived, then you can deduct the income for Virginia purposes. It gives me ab ability to put in an amount. If I put in the amount that was received it lowers the tax owed by almost 2,000. No idea if I'm supposed to find out what to put there, for how many years to put it there or I'm supposed to put zero.

Best answer by DaveF1006

According to this website, all 401K and 457 plan (which is yours) contributions are pre-taxed when contributed. If this was made through a payroll deduction, the contribution was not reported as taxable income at the time of the contribution. This means that the contributions were not non-deductible at the time the contributions were made so you can't deduct the retirement income for Virginia purposes.

@sycamoresouth

E

ErnieS0

During the period of July 1, 1987 through December 31, 1989, contributions made by retirees were not taxable at the federal level but were taxable for Georgia income tax purposes.

Georgia allowed an income tax adjustment. If you never claimed the adjustment, you would have contributions that were taxed by Georgia but not by the federal government.

See Income Tax Bulletin - Teachers Retirement System Recovery Adjustment.

You may wish to contact TRS for more information.

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A

Anonymous

Thanks for the input but say this occurred after 1989. It says If any of your retirement income is from an account created when you lived in another state, and represents a return of contributions that were deductible for federal purposes and nondeductible in the state where you lived, then you can deduct the income for Virginia purposes. Did Georgia tax the contributions?

DaveF1006Answer

According to this website, all 401K and 457 plan (which is yours) contributions are pre-taxed when contributed. If this was made through a payroll deduction, the contribution was not reported as taxable income at the time of the contribution. This means that the contributions were not non-deductible at the time the contributions were made so you can't deduct the retirement income for Virginia purposes.

@sycamoresouth

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