So You Want to Retire Rich (ish) in Georgia? Buckle Up, Buttercup!
Let's face it, folks, saving for retirement can feel like climbing Mount Everest in flip-flops. But hey, at least there's a sweet reward at the top – financial freedom (and maybe a lifetime supply of adult beverages)!
Now, Georgia, bless its peachy heart, understands the struggle. That's why they offer a little somethin' somethin' called the retirement income exclusion. This fancy term basically means you get to keep a chunk of your hard-earned retirement cash without the taxman taking a big ol' bite.
How much are we talkin', here? Well, that depends on your age. Here's the skinny:
Golden Years Club (65 and over): Congratulations, you've graduated to the "spend all your money on cruises" tax bracket! Retirees 65 and over get to exclude a whopping $65,000 of their retirement income from Georgia taxes. That's like a permanent two-for-one sale on margaritas!
Pre-Retirement Posse (62-64): Not quite there yet, but close enough to smell the sunscreen? No worries, you get a little somethin' too. Folks between 62 and 64 can exclude up to $35,000 of their retirement income. Think of it as a down payment on that retirement home in Florida.
Hold on a sec, you might be sayin'. What exactly counts as retirement income? Glad you asked! Here's the list:
Tip: Focus more on ideas, less on words.
- Pensions (because who doesn't love a steady stream of cash?)
- Annuities (your future self thanks you!)
- IRAs and 401(k)s (retirement planning FTW!)
- Even the first $4,000 of your earned income (because hey, everyone needs a little somethin' extra for groceries).
Now, here's the catch (there's always a catch, right?):
This exclusion is for each person, so married couples can potentially double dip and exclude a combined total of $130,000 if they're both over 65 (or $70,000 if they're both between 62 and 64). Talk about a power couple!
This is just for Georgia state taxes, so you'll still have to deal with Uncle Sam on your federal return. But hey, every little bit helps, right?
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| How Much Is The Georgia Retirement Income Exclusion |
FAQ: Georgia Retirement Income Exclusion Edition
How to claim the retirement income exclusion?
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Easy peasy! Just fill out Schedule 1 of your Georgia tax return.
Tip: Read once for gist, twice for details.
How to find out more about the exclusion?
The Georgia Department of Revenue has all the info you need on their website: https://dor.georgia.gov/retirement-income-exclusion
How to convince my spouse to retire in Georgia?
Tip: Slow down when you hit important details.
That one's a bit trickier. Maybe mention the peaches, the sweet tea, and the fact they won't have to pay much in taxes.
How to celebrate getting a tax break?
Personally, we recommend margaritas. But hey, you do you!
QuickTip: Repeat difficult lines until they’re clear.
How to make sure this information is accurate?
Always consult with a tax professional for the most up-to-date details. Laws can change, and we're not accountants (although we do make a mean margarita).
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