Georgia Tax Exemption for Military Retired Pay

Retired U.S. Armed Forces Veterans are eligible for a tax exemption on military retired pay.

• Under 62 years of age up to $17,500 is available for Veterans under 62 who have at least $17,500 of earned income.
• Veterans age 62 to 64 up to $35,000
• Veterans over the age of 65 are up to $65,000.

Thrift Savings Plan (TSP) does not withhold taxes for state or local income tax, but it is reported annually on IRS Form 1099-R. All TSP distributions are subject to state taxes and early distributions may incur higher taxes. 

Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces should not be included in taxable income. Some payments considered disability benefits include:

• Disability compensation and pension payments for disabilities paid either to Veterans or their Family.
• Grants for homes designed for wheelchair living.
• Grants for motor vehicles for Veterans who lost their sight or the use of their limbs, or
• Benefits under a dependent-care assistance program

Link: Georgia Military and Veterans Benefits | The Official Army Benefits Website