RRB 1099-R HELP - GEORGIA

[HaroldinGeorgia]

I need help, or confirmation, on a RRB 1099-R, Georgia resident. Haven't had a RR retiree for years.

Facts are:

Spouse worked for Norfolk Southern for 30 years; turned 60 on 8-25-2006; took early retirement

effective 9-1-2006; received first check (deposit) 10-1-2006, so received 3 payments in 2006.

For 2006, received RRB 1099-R showing:

Box 3 - Employee Contributions = 32,466

Box 4 - Contributory Amt Paid = 7,696

Box 7 - Total Gross Paid = 7,696

Box 9 - Fed W/H = 543

Husband is entitled to receive benefits after her death, so I consider it a "multiple life Annuity"

Based on Pub 575, I calculate Taxable Benefits by dividing employee contributions of 32,466 by

360 (from Table 2)=90X3months= $270 Nontaxable, so $7,426 is Taxable amount for 2006.

Same situation for 2007, except full year's benefits.

I feel comfortable that this is correct for Federal; however, my question is on Georgia. I was advised

that the Federal taxable amount was taxable to GA until she reaches age 62.

I went to the rrb.gov website, looked at the Railroad Retirement and Survivor Benefits handbook,

and on page 40 it says "Tier 1 benefits exceeding social security benefits, such as retirement benefits

payable between ages 60 and 62,---- are treated like private pensions for FEDERAL income tax purposes. The Raidroad Retirement Act specifically exempts benefits paid by the Board from STATE

and local income tax."

Can anyone confirm that my calculations are correct, and that this is Not taxable to GA?

Thanks,

[Gail in Virginia]

I cannot confirm for Georgia, but it would not be taxable in Virginia so that may well be the correct treatment in GA.

[HaroldinGeorgia]

Gail,

Thanks. I think this is confirmed.