Q. Are retirement benefits for FERS employees (Postal Service) subject to state (Georgia) and federal income taxes?
A. A portion of your retirement benefits will be subject to federal income tax. To find out how much, go to www.irs.gov and download a copy of their Publication 721. To the best of my knowledge, the state of Georgia does tax federal retirement benefits. To find out if that’s so and how the tax is applied, you’ll have to check with your state finance office.