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GA Income Tax, Is it as good as it looks for a senior
Old 04-18-2014, 11:27 AM   #1
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GA Income Tax, Is it as good as it looks for a senior

I have been looking to relocate to either South Carolina or Georgia.I have been researching the income tax benefits for seniors andthought SC was pretty good but it appears GA beats SC hands down, I think.
From what I am reading if you are over 65 and filing a joint return, you can deduct the following,
$3000 standard deduction
$7400 joint exemption
$3000 wife exemption
$1300 over 65 exemption
$65,000 (up to) deductible from various income
Of course, like many states, they also do not tax SS payments.
For me, it leaves very little income to be taxed.
Am I missing something?
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Old 04-18-2014, 12:55 PM   #2
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Retirement Income Exclusion
Taxpayers who are 62 years of age 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 will be taxed at the normal rate.
See Form IT-511 to obtain the worksheet for calculating the maximum allowable adjustment.
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Old 04-18-2014, 01:58 PM   #3
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I think Georgians over 65 also get a property tax break of not having to pay the school related portion of the tax bill.
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Old 04-18-2014, 03:58 PM   #4
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The retirement exclusion is per person, not per return. ( ie both you and spouse get the 65k exemption) earned income is taxed , but there is a 4k reduction. bottom line, it is hard to pay any state tax in georgia.
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Old 04-18-2014, 03:59 PM   #5
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the property tax break depends on the city, so research that carefully before you buy a home. ( atlanta area) fulton no, cobb yes, cherokee yes
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Old 04-18-2014, 06:29 PM   #6
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Originally Posted by rothlev View Post
the property tax break depends on the city, so research that carefully before you buy a home. ( atlanta area) fulton no, cobb yes, cherokee yes
What about Gwinnett County? I will have two school aged children, but would love the exemption on property taxes?
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Old 04-18-2014, 09:08 PM   #7
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The deductions I wrote were based on my situation. My wife is much younger than me and we is no earned income.
I was inquiring about GA's generous senior tax breaks because on the Citi-Data, GA sub forum website a poster wrote,
Quote:
South Carolina is better for taxes if you are a retiree than Georgia.
I asked if the poster could elaborate but they never replied. Perhaps, the poster is trying to discourage seniors from coming to Georgia.
I calculated that the tax % on my income for GA is 0.62% and for SC is 4.46% or a savings of about $3600.
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Old 04-19-2014, 06:17 AM   #8
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Senior Homestead Exemption FAQ
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Old 04-19-2014, 09:29 AM   #9
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Originally Posted by MJ View Post
The deductions I wrote were based on my situation. My wife is much younger than me and we is no earned income.
I was inquiring about GA's generous senior tax breaks because on the Citi-Data, GA sub forum website a poster wrote,
I asked if the poster could elaborate but they never replied. Perhaps, the poster is trying to discourage seniors from coming to Georgia.
I calculated that the tax % on my income for GA is 0.62% and for SC is 4.46% or a savings of about $3600.
Kiplinger ranks Georgia #3 and South Carolina #9 as the most tax-friendly states for retirees. The retirement income deduction in SC is only $15,000 per person compared to $65,000 each in GA. Once you have enough income to start paying the tax, SC has a top rate of 7% compared to Georgia's 6%.

For property taxes, SC has a $50K homestead exemption for seniors but certain counties in GA reduce or eliminate the portion for schools. When you combine the state and local sales tax, both states are about even. SC caps the sales tax on cars at $300. The gas tax in SC is a couple of cents less but the roads in GA are better. For what it's worth, SC has better beaches.
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Old 04-19-2014, 09:55 AM   #10
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Many thanks!!
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