Georgia Income Tax Exemption for Seniors

Georiga tax exemption for seniors

Update March 22, 2012 – Tax Exemption for Georgia Seniors Capped

The Georgia Senate voted unanimously Thursday for a sweeping tax plan that its supporters said would help the state compete for jobs and help families. The bill now awaits the signature of Gov. Nathan Deal, who helped put the plan together. Here is the key elements of House Bill 386 that will affect the Georgia Income Tax Exemption for Seniors:

Cap nonwork income that seniors can exclude from income taxes at $65,000, or $130,000 per couple.

Below is my orginal article about the state of Georgia Tax Exemption for Seniors.  It still applies but now will be cap as per the above limits of 65,000, or $130,000 per couple.  This is still quite generous and would cover most people.  – Robert Fowler

Currently in Georgia at age 62 citizens may exempt up to $35,000 individually (or $70,000) of retirement income per couple from the state income tax. The state of Georgia income tax rate is 6% of income.  For a couple exempting the max of $70,000, that would be $4200 in saved on taxes.  This has been the current law.

Now Georgia Governor Perdue is passing a much broader exception for senior age 65 which will phase in started in 2012. House Bill 1055 (AS PASSED HOUSE AND SENATE (at very end of page) raises the retirement income for persons age 65 during any part of the year in 2012 to $65,000 per person, then in 2013 to $100.000, then in 2014 to $150,000, then in 2015 to $200,000 per person for retirement income exemption.   Finally in 2016 all retirement income is exemption from state income tax for a person age 65.

You don’t have to be retired, just have retirement income which is defined as follows:
For the purposes of this paragraph, retirement income shall include but not be limited to interest income, dividend income, net income from rental property, capital gains income, income from royalties, income from pensions and annuities, and no more than $4,000.00 of an individual’s earned income. Earned income in excess of $4,000.00, including but not limited to net business income earned by an individual from any trade or business carried on by such individual, wages, salaries, tips, and other employer compensation, shall not be regarded as retirement income. The receipt of earned income shall not diminish any taxpayer’s eligibility for the retirement income exclusionexclusions allowed by this paragraph except to the extent of the express limitation provided in this subparagraph.

This is a major benefits for the state of Georgia seniors and anyone considering relocating to Georgia.  We applauded Governor Perdue and the state of Georgia for passage of this benefit for the seniors of Georgia. This will be a boost over the long terms to the senior communities of GA.

Thomasville Georgia Retirement

Thomasville Georgia retirement

The history of Thomasville is rich and predates the Civil War! Before Florida was opened up, Thomasville was the last train stop. It was visited in those early days for health reasons, thinking the many pines would be beneficial for those with pulmonary afflictions. Others came to hunt on one of the many Plantations that surround Thomasville. Some just came for the social gatherings.

The streets and roads of this county have been trodden by some very famous and notable people threw out its history.  Joann Woodward, wife of Paul Newman is from here.  Her father was the principal of an all girls’ school here.  This is just one of the many well known personalities of our area. Mrs. Jacqueline Kennedy was tucked away here on one of our many plantations for a time, to give her and the children a respite from the public shortly after President Kennedy’s assassination.

Part of the pride of Thomasville is the tremendous participation in restoration of historical homes and the downtown area.  Thomasville residents take their preservation of history and restoration seriously.  They put their money where some only put their mouth, they simply do it!!  The downtown has undergone restoration on a large serious scale.  A lot of energy, enthusiasm and dollars are being put into the downtown area. But the rewards are worth it.  The result, is a thriving vibrant downtown area that attracts people from miles around.

The homes on Love Street and Warren Ave, near the downtown area, have been dealt a new lease on life over the past eight years. These are now home to many professionals, young and old.  It is a place where neighbors stroll the streets with their children, groups of young parents get together for kickball and flag football, and children play together in the green space at the corner.

Thomasville Georgia cout house
Court House Thomasville GA

“We all love the Warren-Love Street neighborhood, because it is so easy to walk to downtown community events, restaurants, and shopping.  The city tennis courts and the cultural center are also within short walking distance”.  Quote by, Darlone Bailey Kaley
“The neighborhood is special because we all saw the potential to return to a simpler time and way of living, and we were willing to work to make it happen. There are still a few houses waiting to be completed, and we would love to have a few more great neighbors”!
Darlone Bailey Kaley– is an owner and resident of a home on Love Street.

Historic Thomasville GA
Church Garden Thomasville GA

Thomasville Landmarks and The Historical Society are places to receive support and encouragement when taking on any of these restoration projects.

You will appreciate the proximity of being close enough to the Gulf Coast for a day trip, within one hour and thirty minutes express route or two to three hours the slow scenic route.  Just a tree lined forty minute drive on four lane highways to Tallahassee, Florida for all kinds of shopping, eating and entertainment events.  Four hours from Atlanta and North Georgia mountains can be reached in a day.  Savannah and east coast is only three hours away.

Thomasville proper is a good balance of a slow southern atmosphere, with a healthy emphasis on culture for arts, writing, music, acting, and athletics.  These are all encouraged and nurtured here.  If Florida is too crowded for you, try north of the border. “Thomasville;  a place apart.”

Thomasville has received mention in several retirement research articles and books.

Retire in Style: 60 Outstanding Places Across the USA and Canada [Paperback] Warren R. Bland PhD (Author)
When you make your list of places to explore for retirement potential, Thomasville should be on your list.

Historic Thomasville Georgia Visitors Center

Snarky Boomer About The Snarky Boomer

I live in Thomasville Georgia.  I’m a “Baby Boomer” of 1951.  Check out my blog at Boomersberg.com and leave me a comment OR start a conversation in the forum.

 

 

 

 

Thomasville Interesting Facts: Thomasville Georgia deems itself the City of Roses and holds an annual Rose Festival. Thomasville features plantations open to the public, a historic downtown, a large farmer’s market, and a 320 year old oak tree at the corner of Monroe and Crawford streets. The population of Thomasville was 18,413 at the 2010 census

Georgia Small Towns for Retirement | Georgia Retirement Communities

 

Why should a mortgage be paid before retirement?

After the recent colossal economic crisis, when people are running out of cash and wondering how to afford to buy a house, a mortgage is an answer. But before obtaining a mortgage, people must keep certain factors in mind. They must determine what kind of mortgage would be suitable for them and the interest rate attached to it.

In recent times, taking the advantage of a mortgage, people are incessantly buying a new house. This has increased the rate of houses being sold. Mortgages can be obtained at any age and it necessarily takes the span of 7 to 10 years to be repaid. However, people are generally being suggested to repay the mortgage loan before they retire.

Now people may want to know the reason behind this suggestion, so here are the three main reasons.

  • Retirement is the age when people lose their capability to work hard and earn money. This is the time when they need to have a comfortable and debt-free life.  A mortgage payment typically involves 20 to 30 percent of the monthly budget. So, if the mortgage is paid, retirees can manage their finances more comfortably, especially if they live on a fixed budget. It saves them considerable money, which they can spend towards their medical expenses or holidays.
  • Pay-off the mortgage prior to retirement also provides people a long term care. Having equity in a home is considered as an asset, which can be used for many other purposes in life or during the time of emergency. In the event retirees should need some cash, they can consider selling the residence or securing a reverse mortgage in order to meet the needs.
  • It also gives peace of mind to the retirees. Paying off mortgage prior to retirement helps people achieve stress free and tension free life.

Paying off a  mortgage before retirement requires some prior planning. If you find your existing mortgage extending beyond your expected retirement date, apply some strategies.

  • People who are in mid 40s and on the front end of a 30 year mortgage repayment can refinance their mortgage to a fifteen year mortgage. This may increase the monthly payments, but will reduce the span of mortgage repayment from 30 to 15 years.
  • Another viable way of repaying the mortgage as early as possible is making additional principal payment each month. Many mortgage lenders allow borrowers to pay more than minimum monthly payment so that mortgage is paid earlier. This reduces the overall interest charges as well as the span of mortgage repayment.

In conclusion, almost 70 percent Americans own a house, out of which 35 percent are mortgage-free during retirement, so if you also prefer a stress free life after your retirement, take the necessary steps to achieve the goal.

This is a guest post by K. Craig who is a financial writer associated with various finance related Communities. He has been providing advice on debt relief since 2007 and also written some great articles on bankruptcy, mortgage refinance, credit counseling, credit repair, debt management, personal injury and so on.