The Subtractions from Income section allows eligible taxpayers to reduce their Georgia taxable income by claiming income exclusions, deductions, and other adjustments authorized by Georgia law.
Many of these subtractions apply only to specific situations, such as retirement income, military retirement benefits, education savings plan contributions, or other income that Georgia does not tax.
Program Entry
To access this section, navigate to:
State Section → Edit Georgia Return → Subtractions from Income
Georgia Retirement Exclusion
Georgia offers a retirement income exclusion for qualifying taxpayers.
Taxpayers who are 62 years of age or older, or who qualify due to a permanent disability, may be eligible to exclude certain retirement income from Georgia taxation.
The Georgia Retirement Exclusion section allows you to:
- Enter taxable state and local tax refunds included on your Federal return.
- Enter disability information when applicable.
- Complete the Retirement Exclusion Worksheet used to calculate the allowable exclusion.
Georgia Military Retirement Exclusion 🇺🇸
Georgia provides a separate exclusion for certain military retirement income.
This section allows you to:
- Adjust military retirement income automatically carried from the Federal return.
- Enter additional Georgia-sourced earned income when applicable.
- Allocate amounts between the taxpayer and the spouse if filing jointly.
Taxpayers under age 62 who receive qualifying military retirement benefits may be eligible for this exclusion.
2025 Georgia Higher Education Savings Plan (529) Contributions
Georgia allows a deduction for contributions made to the Georgia Higher Education Savings Plan (529 Plan).
Contribution limits are generally:
- Up to $4,000 per beneficiary for Single filers
- Up to $8,000 per beneficiary for Married Filing Jointly taxpayers
Georgia Net Operating Loss (NOL) Utilized
Enter any qualifying Georgia Net Operating Loss that was utilized during the tax year.
A Net Operating Loss allows taxpayers to offset income using losses carried forward from other tax years.
Taxable State Refunds Other Than Georgia
If a state tax refund from another state was included in your federal income, it may qualify for subtraction on the Georgia return.
This prevents certain state income tax refunds from being taxed twice.
Retirement Income Previously Taxed by Georgia
Enter distributions from retirement accounts such as:
- Keogh plans
- SEP plans
- SIMPLE plans
when Georgia tax has already been paid on those contributions in prior years.
This adjustment helps prevent double taxation of the same income.
Federal Jobs Tax Credit Wage Adjustment
If wages were reduced on the federal return because of a Federal Jobs Tax Credit, those amounts may qualify for subtraction on the Georgia return.
Dependents' Unearned Income Included on the Federal Return
If a dependent's unearned income was included in the parent's Federal Adjusted Gross Income, a subtraction may be allowed on the Georgia return.
Income Exempt by Federal Law or Treaty
Enter income received from any fund, program, or system that is exempt from taxation under federal law or an international treaty.
Examples may include certain federally protected benefits or payments.
Teachers Retirement System Adjustment
Retired educators may qualify for a subtraction if they made contributions to the Teachers Retirement System of Georgia between:
July 1, 1987, and December 31, 1989
and those contributions were previously taxed by Georgia.
High Deductible Health Plan (HDHP) Premiums
Enter qualifying premiums paid for a High Deductible Health Plan that are eligible for subtraction under Georgia law.
Special Depreciation Adjustment
Georgia may require depreciation calculations that differ from federal depreciation rules.
This field is used to report adjustments necessary to reconcile those differences.
Verify depreciation calculations carefully before making an adjustment.
Income Received from a Deceased Veteran
Certain income received by a surviving family member of a deceased veteran may qualify for subtraction from Georgia taxable income.
Federal Disaster Relief Payments
Certain disaster relief payments may qualify for subtraction if received from:
- A federal disaster relief program
- The United States Department of Agriculture
- A Georgia disaster assistance program administered by the state
These payments must meet Georgia's eligibility requirements.
Payments to Disabled First Responders
Georgia allows a subtraction for qualifying payments made to disabled first responders pursuant to Georgia law.
These payments may be excluded to the extent they are not otherwise exempt from taxation.
House Bill 149 Deduction
For owners of pass-through entities that elected to pay tax at the entity level, enter the taxpayer's allocable share of income that was taxed at the entity level.
This adjustment prevents double taxation of the same income.
Other Subtractions
Use Other Subtractions to enter any subtraction authorized by Georgia law that does not fit into one of the categories listed above.
When entering an Other Subtraction:
- Enter the amount.
- Provide a description.
- Retain supporting documentation with your tax records.
Additional Notes
- Most taxpayers will not qualify for every subtraction listed in this section.
- Only enter amounts that qualify under Georgia law.
- Some subtractions may require worksheets or supporting documentation.
- Review all entries carefully to ensure accurate tax calculations.