Is early 403b withdrawal taxable income in Georgia? Posted on April 14, 2011
I had to live off of my 403b and did not take the 10% penalty for early withdrawal off the top. I discovered that, eventhough the amount was only 16,000 for the year, this low amount did not negate the penalty and moreover, the money I took from my retirement savings was also counted as federal "income" and taxed as such on top of the 10% penalty. I can find no information about whether or not it is considered income under Georgia tax law or whether I can consider it an "other adjustment" on my return. Fortunately, I qualified for "currently not collectable" under the federal guidelines although I will still owe them a fortune in the future (this is for 2009.) Although I am now employed, I am seriously under-employed and I've put off filing my 2009 state return as I know just how much more difficult making ends meet will be once payments to the state are added to the mix. So my second question is, does GA have a currently not collectable program, or can you recommend a specific department in the state department of revenue to call? It was pure luck that I found someone in the IRS who suggested classifying me as currently not collectable after I had spoken with at least 15 different representatives.
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