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It's Independence Day and my mind immediately goes to the brave men and women currently serving or that have severed in the armed forces.
Georgia extends a range of exclusive tax benefits to Service members, Veterans, and their Families. Eligibility for specific benefits may hinge on factors like residency, military affiliation, and the Veteran’s disability status. Here are a few benefits available in the state of Georgia.
Georgia State Income Tax Extension:
The tax filing deadline for Service members deployed to a combat area is extended until 180 days after the deployment ends.
Georgia Tax Exemption for Military Retired Pay:
Retired U.S. Armed Forces Veterans are eligible for a tax exemption on military retired pay. 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.
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
Georgia State Taxes on U.S. Department of Veterans Affairs Military Disability Retirement Pay: 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
Georgia State Taxes on U.S. Department of Veterans Affairs Disability and Dependency Indemnity Compensation (DIC): DIC (Dependency and Indemnity Compensation) is a tax-free financial benefit provided to qualified survivors of military Service members who perished while on active duty or eligible survivors of Veterans whose demise was attributed to a service-connected injury or illness.
Military Survivor Benefit Plan (SBP)/ Reserve Component Survivor Benefit Plan (RCSBP)/ Retired Serviceman’s Family Protection Plan (RSFPP) Georgia State Tax Benefits: SBP (Survivor Benefit Plan), RCSBP (Reserve Component Survivor Benefit Plan), and RSFPP (Retired Serviceman’s Family Protection Plan) are considered taxable income. However, Georgia provides tax exclusions based on age and disability. Taxpayers aged 62 to 64 or those who are permanently and totally disabled under the age of 62 have the option to exclude up to $35,000 of their retirement income from their tax return. For taxpayers aged 65 or older, the exclusion limit increases to $65,000 for retirement income on their tax return.
Georgia National Guard Income Tax Credit: Georgia offers a tax credit to resident National Guard Service members engaged in active duty or active duty for training with the U.S. Armed Forces for a continuous period exceeding 90 days. This tax credit covers the portion of the Servicemember’s Group Life Insurance premiums that the Service member pays while on active duty.
Georgia Homestead Tax Exemption for Disabled Veterans, Surviving Spouse, or Minor Children: Georgia provides a homestead property tax exemption for qualified disabled Veterans, their Surviving spouses, or minor Children. As of 2023, the exemption amount is set at $109,986. Any property value exceeding this exempted amount remains subject to taxation.
Forgiveness of Georgia State Income Taxes for Service Members Killed as a Result of Combat: Service members who lose their lives due to wounds, disease, or injury incurred while serving in a combat zone as part of the U.S. Armed Forces are entirely exempt from Georgia income taxes for the tax year in which they passed away. Furthermore, there will be no taxation for any previous taxable year ending on or after the first day of their service in the combat zone.
Georgia Sales Tax Exemption on Vehicles Purchased through U.S. Department of Veterans Affairs Grant: A disabled Veteran granted funding by the VA for the purchase and modification of a specially adapted vehicle to meet their disability needs is eligible for an exemption from state sales tax, specifically for the original grant amount.
Loss or permanent loss of use of one or both feet
Loss or permanent loss of use of one or both hands
Loss of sight in one or both eyes
Permanent impairment of vision in both eyes to a prescribed degree
Georgia Ad Valorem Tax Exemption on Vehicles Owned by 100% Disabled Veterans: Disabled Veterans are eligible for an exemption from vehicle Ad Valorem taxes for one of their vehicles if it displays the free Georgia Disabled Veteran, Purple Heart, or Medal of Honor license plate. To qualify for this exemption, the VA must verify that the Veteran is either 100% totally and permanently service-connected disabled or they are currently receiving or are entitled to receive compensation from the VA for:
Loss or permanent loss of use of one or both feet
Loss or permanent loss of use of one or both hands
Loss of sight in one or both eyes
Permanent impairment of vision in both eyes to a prescribed degree
Sales Tax:
Statewide: 4.0%
Counties: can levy an additional sales tax of no more than 3.0%
Current average sales tax (with local tax included): 7.40%
Schedule a Consultation to discuss which benefits YOU qualify for today!
Disclaimer:
The information provided here is for general guidance and informational purposes only. While we strive to offer accurate and up-to-date content, it is essential to consult with local Veterans benefits providers or legal experts for specific advice tailored to your individual circumstances. Local regulations, eligibility criteria, and available benefits can vary significantly, so seeking professional assistance ensures that you receive accurate and personalized guidance.
Source: Tax Exemptions | Georgia Department of Veterans Service | 2023
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