Georgia is just a peach of a state to live in for retirees, at least when it comes to income taxes. According to a recent Kiplinger’s article:
Social Security income is exempt, and so is up to $35,000 of most types of retirement income. For those 65 and older, the 2012 exemption climbs to $65,000 per taxpayer…Full-time residents qualify for a homestead exemption, and residents 65 and older may qualify for additional deductions from property taxes.
So what is meant by “most types of retirement income?”
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 and income from royalties. For married couples filing joint returns with both members receiving retirement income, the maximum adjustment for the applicable year may be up to twice the individual exclusion amount. Retirement income exceeding the maximum adjustable amount is taxed at the normal rate. The retirement-income exclusion for 2012 is $35,000 if ages 62 to 64, or younger and permanently disabled. If 65 or older, the amount is $65,000.
Read the entire article to check out the rest of Georgia’s tax-friendly policies for retirees.
Note: The above references some general guidelines, but this is not intended to be comprehensive tax advice. Please see a tax professional. JPH Advisory Group not responsible for information provided by outside entities.