Georgia Individual Income Tax Booklet

Individual Income Tax Booklet
IT-511 Individual Income Tax 500 and 500EZ Forms and General Instructions
IT 511
Rev. 12.06.23

Frank M. O'Connell
Revenue Commissioner

Brian P. Kemp
Governor

Georgia Department of Revenue
2023
Individual Income Tax

500 and 500EZ
Forms and General Instructions

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ELECTRONIC FILING

WHAT'S INSIDE?
Filing Requirements..............................................................9
Form 500 Instructions.....................................................11-13
Form 500 Net Operating Loss Instructions.........................20
Free Electronic Filing ...........................................................4
General Information...........................................................7-8



Georgia Tax Center..............................................................2

free!

Low Income Tax Credit Worksheet.....................................25

 Receive your refund by direct deposit!

Mailing Addresses................................................................5

 File fast and securely from your home PC!

Message from Commissioner O'Connell.........................1
Other State's Tax Credit Worksheet.................................. 24

ON-LINE PAYMENTS

Part-year Resident and Nonresident Instructions.........18-19
Payment Options.................................................................4
Penalty and Interest.............................................................7
Requesting an Extension to File..........................................7
Retirement Income Exclusion ...........................................17
Return Filing Tips.................................................................6
Schedule For Estimating Georgia Income Taxes.............. 25
Tax Credits.....................................................................26-28
Tax Rate Schedule..............................................................59
Taxpayer's Assistance..........................................................3
Tax Tables......................................................................63-65
What's New..........................................................................7
Where's My Refund..............................................................4

The Georgia Department of Revenue accepts Visa,
American Express, MasterCard, and Discover credit
cards for payment of:
√ Current-year and prior-year individual tax payments
√ Liabilities on Department of Revenue-issued
assessment notices
√ Individual estimated tax payments
√ Note: a convenience fee will be charged by the provider

Follow us on Facebook

Forms in tax booklet: Form 500, Form 500EZ, and Form IND-CR and X formerly Twitter

 Check refund status
 Make payments
 See page 2 for more information on GTC
Visit dor.georgia.gov for more information about these and other topics of interest.

FROM THE COMMISSIONER
Did you know that by registering an account with the Department of Revenue’s Georgia Tax Center (GTC), you can sign up to
receive notifications when any activity takes place on your account? These notifications help you closely monitor your tax status
and help combat fraudulent activity. Visit gtc.dor.ga.gov to register. For assistance, you may visit our self-service instructional
videos at http://dor.georgia.gov/georgia-tax-center-help/how-videos.
Did you also know that taxpayers who file their returns electronically and have their refunds directly deposited into their bank
accounts receive their refunds much more quickly than those who filed a paper return? If you have been considering electronic
filing, some of the benefits include:
□ Faster and more accurate processing
□ Receiving your refund by mail or direct deposit
□ The ability to file from your home PC or have your taxes prepared by a professional electronic return originator
□ Elimination of mailing paper returns
The Department of Revenue encourages taxpayers to take time to review and adjust their Georgia income tax withholding if
they received a substantial refund last year. By reducing withholding amounts, taxpayers have immediate use of their earnings,
and will not have to wait until the following year to get their money. Please use the Form G-4 (or G-4P if you are receiving a
pension) to determine your withholding allowances. These forms can be found on the Department’s website at dor.georgia.gov.
If you file electronically and need to make a payment, you may pay by electronic check using the Georgia Tax Center. Visit
gtc.dor.ga.gov or visit our self-service instructional videos at http://dor.georgia.gov/georgia-tax-center-help/how-videos. For
additional information contact the Taxpayer Customer Contact Center at 1-877-423-6711.
The Department of Revenue, as outlined in the Taxpayer Bill of Rights, will provide “fair, courteous and timely service” to the
taxpayers of Georgia. We have implemented several initiatives to ensure we uphold that standard. Our mission is to administer
the tax laws of the state of Georgia fairly and efficiently in order to promote public confidence and compliance while providing
excellent customer service. Visit https://dor.georgia.gov/taxpayer-bill-rights to view a copy of the Taxpayer Bill of Rights.
Frank M. O'Connell
Revenue Commissioner

Page 1

Individual Income Tax Online Services
What is the Georgia Tax Center?
The Georgia Tax Center (GTC) is the Department of Revenue’s secure self-service customer
facing portal for making online Individual or Business Tax payments and for corresponding
with the Department of Revenue.

Who Can Sign Up for GTC?
Any individual who has filed an Individual Income Tax Return or would like to submit a Georgia estimated tax payment is eligible to use GTC.
GTC Features
You will be able to do the following without a GTC login:
• Check refund status
• Make quick payments (estimated tax payments or assessment payments)
• Protest proposed assessments
• Request penalty waivers
• Submit additional documentation
A login is required to do the following:
• Receive notification when a return is filed with your Social Security
Number (SSN) or a refund has been issued
• Request an Installment Plan Agreement (IPA)
• Request an Offer in Compromise (OIC)
• Submit a Power of Attorney (POA)
• View your 1099-G electronically
• View account balance
• Make payments
• Perform general account maintenance - address change, preapproval of credits,
view credits, etc.
How Do I Sign Up? To use GTC, visit our website at https://gtc.dor.ga.gov First time users must
register before accessing tax accounts. To register, you will need:
•
•
•

Social Security Number (SSN)
Federal Adjusted Gross Income (Federal AGI) from the most recent return filed in
the State of Georgia
A valid e-mail address

Note: Third party filers can sign up for GTC to access their clients information with the proper documentation and authorization. For more information see:
https://dor.georgia.gov/taxes/information-tax-professionals/third-party-filers
Please visit our website to sign up for access to GTC, find helpful links, instructions, and how
to videos: dor.georgia.gov/georgia-tax-center-help	 	
Page 2

Taxpayer's Assistance and Resources
Find us on the web by going to dor.georgia.gov
•
•
•
•
•

Download Tax Forms
Find Answers to Frequently Asked Questions
Access Where's My Refund
View the Taxpayer Bill of Rights
Find Georgia Regulations
Customer Contact Center: 1-877-423-6711
https://dor.georgia.gov/taxes/taxes-individuals

         Get help with:
• Refunds
• Billing
• Web Access
Helpful Resources and Services
• Volunteer Income Tax Assistance (VITA) - dor.georgia.gov/need-help-your-taxes or call
1-800-906-9887
•

Free File Alliance visit dor.georgia.gov/free-file-alliance

•

AARP - Senior citizens 1-888-AARPNOW (1-888-227-7669) from February 1 to April 15

•

Georgia Relay - Deaf and hard of hearing taxpayers (TDD) visit georgiarelay.org
Federal Tax Changes/Conformity, Legislation, and other Policy Information
Visit dor.georgia.gov/taxes/tax-rules-and-policies for more information on:

•
•
•

Federal Tax Changes/Conformity with Federal Changes
Regulations
Rules and Policies

For legislative information see: dor.georgia.gov/about-department-revenue/office-generalcounsel/
legislation-summaries.
Georgia did not adopt the revised net operating loss provisions in the 2020 CARES Act and the
modification to the Code Section 461(l) limitation in the 2020 CARES Act and the American Rescue Plan Act of 2021.	
• For losses incurred in taxable years beginning on or after January 1, 2018, there is an 80% limitation
on the usage of net operating losses (the 80% limitation is based on Georgia taxable net income).
• The I.R.C. Section 461(l) adjustment (limitation on losses for noncorporate taxpayers) is required
in the same manner as was required before the CARES Act.
• For more information on Georgia's treatment of the Cares Act, see https://dor.georgia.gov/rules-policies/income-tax/income-tax-federal-tax-changes
Page 3

Where's My Refund?

FREE

Check the status of your refund online
at gtc.dor.ga.gov or by calling 1-877-423-6711.

ELECTRONIC FILING
The Department of Revenue has partnered with
certain software companies to offer free and/or low
cost on-line filing services to Georgia taxpayers
under the Free File Alliance Program. Under this
agreement, qualified taxpayers can prepare and
file their Georgia individual income tax returns
for free or a low cost using approved software.
Each software company has income limitations
and other restrictions for their free services.
Please review each company’s offer before
selecting a product. For more information, visit
our website at dor.georgia.gov/free-file-alliance.
If you do not qualify for free electronic services, you
may file electronically using software produced by
an approved software listed on our website
dor.georgia.gov/approved-software-vendors.

Volunteer Income Tax Assistance (VITA)
The VITA program was established by the IRS to
assist qualified individuals with free electronic tax
preparation services. Assistance is geared towards
individuals with low to moderate income (less than
$55,000 per year). The preparers are IRS-certified
and can prepare basic income tax returns. There
are several VITA locations in the metro area and
throughout Georgia. For more information visit our
website at dor.georgia.gov/need-help-your-taxes.

2-D Barcode

Please allow 12 weeks to receive refunds. The Department is taking additional fraud prevention measures to
ensure tax refunds are issued to the correct individuals.
You will receive your refund via paper check if
you are a first time Georgia filer or if you have not
filed your taxes in five or more years. This applies for both electronic and paper return filers.

Note: A claim for refund must be made within three

(3) years from the later of the date the tax was paid
or the due date of the return, including extensions.

Payment Options

GTC accepts individual income and estimated tax payments. For information about GTC, visit our website
at gtc.dor.ga.gov or visit our self-service instructional
videos at dor.georgia.gov/georgia-tax-center-help.
The Georgia Department of Revenue accepts Visa,
American Express, MasterCard, and Discover credit
cards as payment for current year individual income
tax due on original Forms 500, 500EZ, and 500ES,
as well as for liabilities presented to taxpayers via
Georgia Department of Revenue assessment notices. Credit card payments can be made online.
There is a convenience fee for this service that is
paid directly to the credit card processing company.
For more information on payments, visit our website at dor.
georgia.gov/credit-card-payments or contact the Taxpayer Services Customer Contact Center at 1-877-423-6711.
Installment Payment Agreement. You must meet the
following criteria for an installment payment agreement:
 Returns for all years must be filed
 Agreements are up to 60 months
 Payments should be made through automatic debit
from your bank account

The two-dimensional (2D) barcode that appears on
your return is the encoded information you entered
on your return. This barcode reduces errors and
saves time in processing the return. The 2D barcode
is only visible after your return has been printed.

Note: There is a set up cost associated with initiating
an Installment Payment Agreement.

Installment payment requests may be submitted online
via the Georgia Tax Center (GTC) at gtc.dor.ga.gov.
Please contact the Installment Payment Agreement
Section at 404-417-2122 or via e-mail to payment.plan@
dor.ga.gov to determine eligibility. For more information
on Installment Payment Agreements, visit our website
at https://dor.georgia.gov/installment-agreements-faq.

Page 4

Note: Sending your return by certified mail delays the processing of your return and your refund.

Mailing Address
Tax Returns
Form 500 without payment:

Form 500 with payment:

PROCESSING CENTER

PROCESSING CENTER

GEORGIA DEPARTMENT OF REVENUE

GEORGIA DEPARTMENT OF REVENUE

PO BOX 740380

PO BOX 740399

ATLANTA GA 30374-0380

ATLANTA GA 30374-0399

Form 500X Amended:
PROCESSING CENTER
GEORGIA DEPARTMENT OF REVENUE
PO BOX 740318
ATLANTA GA 30374-0318
_______________________________________________________________________________________

Payments without Return
Form 500-ES Individual Estimate Tax Voucher
PROCESSING CENTER
GEORGIA DEPARTMENT OF REVENUE
PO BOX 740319
ATLANTA GA 30374-0319
	Form 525-TV Payment Voucher
Note: If you filed electronically and are making a payment by check
	PROCESSING CENTER
	GEORGIA DEPARTMENT OF REVENUE
	PO BOX 740323
	ATLANTA GA 30374-0323
Form IT-560 Extension Payment Voucher
PROCESSING CENTER
	GEORGIA DEPARTMENT OF REVENUE
PO BOX 105198
ATLANTA GA 30348-5198

Page 5

Filing Checklist
 Have you considered filing your return electronically? It is safe and convenient to file
electronically. For more information, visit dor.georgia.gov/why-should-i-file-electronically
 Checked that the Social Security Number(s) on the return are accurate and complete
 Added all the dependents' information, if applicable
 Checked math and calculations


Amounts are rounded to the nearest dollar

 Correctly calculated the tax amount using the Tax Rate Schedule
 Completed the Income Statement Detail section where Georgia income tax was withheld on
Forms W-2s, 1099s, G2-RPs, G2-LPs, G2-As, and/or G2-FLs. Attached/included the forms
with my returns.
 Signed and dated the return


Both spouses signed the joint return, even if only one spouse earned the income


Note: Anyone paid to prepare the return must also sign the return

 Completed and included all schedules and IND-CRs that are applicable


Note: Schedule 2 credits must be filed electronically

 Mailed the return to the correct address
Dos and Don'ts For Filing Paper Returns
Do
 Do include your W-2(s), 1099(s), GR-2P(s) and other supporting income statements
 Do complete the Income Statement Details section for Georgia tax withheld
 Paper Filing: Do send your return, check/money order, and 525-TV voucher to the address on
the return
 Do use GTC or the Form IT-560 to make an extension payment
 Do make your check or money order payable to the Georgia Department of Revenue
Don't


Do not include cents on your return. Round to the nearest dollar.



Do not staple your W-2(s), 1099(s) and other forms to your return



Do not use the Form 500 to correct a previously filed return - Use Form 500X

Note: Sending your return by certified mail delays the processing of your return and your refund.

Page 6

What's New

GENERAL INFORMATION

 New Tax Credits: Qualified Foster Child Donation
and Qualified Law Enforcement credit. See Tax
Summary for more details dor.georgia.gov/tax-creditsummaries

Extension to File. The Georgia return must be filed
along with a copy of Federal Form 4868 or the IRS
confirmation letter on or before the extended Federal
due date. If you do not need a Federal extension, you
may use Georgia Form IT-303 to request an
extension to file your Georgia return.

 New Charitable Contribution: Disabled Veterans'
Scholarship Fund: See Checkoff Georgia page for
more details.

An extension to file does not extend the date for
paying the tax. Taxes must be paid by the statutory
due date to avoid late payment penalty and interest. The
amount paid should be entered on Form 500, Line 25.

 Revised Dependent Section: The dependent section
of the form has been updated to include the unborn
dependent exemption on Line 7b. Note: There are certain
requirements for claiming the unborn dependent. See
page 11 for more details on claiming the unborn dependent.

Amended Returns. File Form 500X to correct information reported on Form 500. Do not use Form 500 to
correct a previously filed return or use Form 500X as
an original return.

 Depreciation Adjustment: Schedule 1, Lines 3 and
11 have been updated to show the difference in depreciation adjustments between Georgia and Federal law.
 Organ Donation Expenses Deduction Increase:
For tax years beginning on or after January 1, 2023, the
maximum deduction for unreimbursed travel expenses,
lodging expenses, and lost wages incurred as a direct
result of an organ donation is now $25,000.
 Net Operating Loss- New Schedule 4: Beginning
in tax year 2023, the Net Operating loss is included in
the Form 500/500X as Schedule 4.The standalone form
500-NOL should only be used for years prior to tax year
2023.
 Qualified Education Expense and Qualified Rural Hospital Expense Tax: These credits have been
revised, for more information, see https://dor.georgia.
gov/tax-credit-summaries.
 2024 Income Tax Changes: Effective January 1,
2024, the income tax rate will be 5.49%. Additionally,
personal exemptions have been repealed except for the
$3,000 dependent exemption. Finally, Georgia standard
deductions have increased to $24,000 for Married Filing
Joint returns and $12,000 for Single, Head of Household,
and Married Filing Separate returns. The Department
encourages taxpayers to review their estimated tax
payments and wage withholdings for 2024.
When to File. Calendar year taxpayers are required to
file on or before April 15, 2024. Fiscal year taxpayers
must file on or before the 15th day of the fourth month
after the close of their taxable year.

When Electronic Filing is Required. Electronic filling
is required for the following:
 Taxpayers that remit payments by electronic funds
transfer, whether on a mandatory or voluntary basis,
must file all associated returns electronically.

A return preparer who prepares an income tax
return, must electronically file the return, when the
federal counterpart of such return is required to be filed
electronically pursuant to the Internal Revenue Code of
1986 or Internal Revenue Service regulations.
 Also, a return is required to be electronically filed
if the return generates, allocates, claims, utilizes, or
includes in any manner a series 100 tax credit. (see
page 26)
Penalty and Interest. Tax not paid by the statutory
due date of the return is subject to interest and ½ of
1 percent late payment penalty per month, or fraction
thereof. Also, a monthly late filing penalty is imposed at
a rate of 5 percent of the tax not paid by the original due
date. Interest accrues until the tax due has been paid in
full. The combined total of late filing and late payment
penalty cannot exceed 25 percent of the tax not paid by
the original due date. An extension of time for filing the
return does not extend the date for making the payment.
Additional penalties may apply as follows:
 Frivolous Return Penalty - $1,000. (A frivolous return
is one that contains incorrect or insufficient information
necessary to accurately compute the appropriate tax
liability with the intent to delay or impede Georgia tax
law or is based on a frivolous position.)
 Negligent Underpayment Penalty - 5 percent of the
underpaid amount.

Page 7

GENERAL INFORMATION
 Fraudulent Underpayment Penalty - 50 percent of
the underpaid amount.
 Failure to File Estimated Tax Penalty - 9 percent
per year for the period of underpayment. Use Form 500
UET to calculate the penalty.
Interest that accrues beginning July 1, 2016 accrues at
an annual rate equal to the Federal Reserve prime rate
plus 3 percent. The interest rate will be reviewed and
may be adjusted in January of each subsequent calendar year. For more information on Penalties and Interest,
see: https://dor.georgia.gov/penalty-and-interest-rates
Assessments. If your return is reviewed and it is determined that you owe additional taxes, generally, you will
be issued a Proposed Assessment. Once a Proposed
Assessment is issued, you have 30 days to submit a
protest on the Georgia Tax Center (GTC) website. After
30 days, the Department will issue an Official Assessment and Demand for Payment. You then have 30 days
to file an appeal with either the Georgia Tax Tribunal or
in the appropriate Superior Court. For more information and rights as a taxpayer, see the Taxpayer Bill of
Rights on the Department’s website at dor.georgia.gov.
Supporting Documents. We will request information
to support the amounts listed on your Georgia income
tax return and related schedules when necessary. However, in addition to withholding statements (W-2s,1099s,
G2-RPs, etc.) where taxes were withheld you must
include the following documentation with your Georgia return when it is filed for the following situations:
 The amount on Form 500, Line 8 is $40,000 or more,
or less than the total income on your W-2(s) - submit
a copy of Pages 1, 2, and Schedule 1 of your Federal
return (the Federal Schedule 1 must be included if a
copy was submitted with your federal return).
 You itemize deductions - submit a copy of Federal
Form 1040 Schedule A.
 You claim the Georgia child and dependent care
expense credit - submit the appropriate Federal child
care credit schedule.
 You claim a credit for taxes paid to another state(s)submit a copy of your return filed with the other state(s).
Address Changes. You must notify the Department
of your address change. Notification of an address

change can be made through GTC inside a logon, or
by calling 1-877-423-6711 or writing the new address
on your tax return and checking the address change
box.
Name Changes. The Department currently requires a copy of one of the following documents
plus a copy of a photo ID reflecting name change.
A legal document reflecting the name change:
•
Superior Court order/decree/certificate
•
Marriage Certificate/Divorce decree
•
Social Security Card
Valid photo ID issued reflecting name change:
US State issued ID card (front and back)
•
•
US Passport
These documents should be submitted with your tax
return.	
Innocent Spouse Relief. Individuals who
were granted innocent spouse relief by the Internal Revenue Service may be eligible for relief
from liability for Georgia tax, interest and penalty.
Individual Retirement Accounts. The provisions concerning taxability and conversion from
a traditional IRA to a Roth IRA are the same
for Georgia and the Internal Revenue Service.
Withholding on Lump-sum Distributions. The
payee of any non-periodic payment may elect to
have withholding made on the non-periodic
distributions from a pension, annuity, or similar fund.
The election shall remain in effect until revoked by
the payee. See Form G-4P for more information.
Income from Partnerships and S Corporations.
Nonresident partners must pay Georgia income tax
on their portion of the partnership’s Georgia income.
Nonresident shareholders must pay Georgia income
tax on their portion of the S Corporation's Georgia
income; resident shareholders and partners must report their total S Corporation or partnership income
(but may be eligible for the credit for taxes paid to
other states or a subtraction when the income is
taxed at the entity level in Georgia or another state).
Federal Audits. Whenever a Federal audit or other
Federal adjustment results in a change in net income
for any year, you are required to furnish under separate cover, within 180 days, a schedule reflecting all
changes. Please include the schedule when you file
Form 500X. Additionally, if the changes result in a refund, the refund must be claimed within one year of the

Page 8

FILING REQUIREMENTS
7. One 65 or over, and both blind..............$18,400
8. Both 65 or over, and blind.....................$	19,700
C. Married Filing Separate
1. Under 65, not blind................................$	7,250
2. Under 65, and blind...............................$	8,550
3. 65 or over, not blind...............................$	8,550
4. 65 or over, and blind..............................$9,850

date the changes are submitted. If you do not submit
a return reflecting all changes and the Commissioner
receives this information in a report from the United
States Government, the Commissioner will issue an assessment for tax due within five years from the date the
report is received from the United States Government.
A taxpayer who fails to notify the Commissioner
within 180 days forfeits any Georgia refund as
a result of an IRS audit if the normal statute of
limitations has expired. However, 90 percent of any
overpayment can be applied to a balance due for
another year that is a result of the same IRS audit.
Withholding on Nonresidents.
Withholding
is required on the members' share of the taxable income sourced to this state, whether distributed or
not, from Partnerships, Limited Liability Companies
and S Corporations. Withholding should be reported on Form G2-A and entered on Form 500, Line
24. Include a copy of Form G2-A with your return.
Withholding is also required on the sale or transfer of
real property and associated tangible personal property
by nonresidents of Georgia. Tax withheld is reported on
Form G2-RP and should be entered on Form 500, Line
24. Include a copy of Form G2-RP with your return.
Full-year Residents
Full-year residents are taxed on all income, except tax
exempt income, regardless of the source or where derived.
You are required to file a Georgia income tax return if:

These requirements apply as long as your legal residence
is Georgia, even if you are absent from or live outside the
State temporarily. A credit for taxes paid to another state is
allowed. See the worksheet on page 24 for more information.
Part-year and Nonresidents
1. Part-year residents and nonresidents who work in Georgia
or receive income from Georgia sources are required to
file Georgia Form 500 and complete Form 500 Schedule
3 to calculate Georgia taxable income. Note: Form 500
Schedule 3 should only be attached if it is applicable.
2. Married part-year residents with income earned
in Georgia whose spouse is a nonresident can file a
separate return claiming their own allowable exemptions,
dependents and deductions, or file a joint return.
3. If one spouse is a resident and one is a part-year resident or
nonresident, enter 3 in the residency status box and complete
Form 500, Schedule 3 to calculate Georgia taxable income.
Part-year Residents
1. If you are a legal resident of Georgia for only a portion
of the tax year and are required to file a Federal income tax
return, you are required to file a Georgia income tax return.

 You are required to file a Federal income tax

return;
 You have income subject to Georgia income tax
that is not subject to Federal income tax;
 Your income exceeds the standard deduction and
personal exemptions as indicated below:
A. Single, Head of Household or Qualifying Surviving
Spouse
1. Under 65, not blind.................................$	8,100
2. Under 65, and blind................................$	9,400
3. 65 or over, not blind................................$	9,400
4. 65 or over, and blind.............................$	10,700
B. Married Filing Joint
1. Both under 65, not blind........................$	14,500
2. One 65 or over, not blind.......................$15,800
3. Both under 65, both blind......................$	17,100
4. Both under 65, one blind.......................$	15,800
5. Both 65 or over, not blind......................$	17,100
6. One 65 or over, and blind......................$17,100

2. Part-year residents who claim a credit for taxes paid to another
state for income earned while a resident must include a copy
of the individual income tax return filed with that state(s) with
their Georgia return. Otherwise the credit will not be allowed.
Nonresidents
1. Nonresidents who work in Georgia or receive income from
Georgia sources and are required to file a Federal return are
required to file a Georgia income tax return.
2. Legal residents of other states are not required to file a
Georgia tax return if their only activity for financial gain or profit in
Georgia consists of performing services for an employer as an
employee where the wages for such services does not exceed
the lesser of five percent of the income received from performing
services in all places during the taxable year or $5,000.
3. A nonresident, who receives deferred compensation or
income from the exercise of stock options that were earned in
Georgia in a prior year's required to pay tax on the income, but
only if the prior year’s income exceeds the lesser of: 5 percent
of the income received by the person in all places during the

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FILING REQUIREMENTS
current taxable year; or $5,000. However, the income is not
taxed if federal law prohibits the state from taxing it. Federal
law prohibits state taxation of some types of retirement
income including pensions as well as income received from
nonqualified deferred compensation plans if the income is
paid out over the life expectancy of the person or at least
10 years. See Regulation 560-7-4-.05 for more information.
Taxpayers Required to File Form 1040NR
Individuals who are required to file Federal Form 1040NR must
file Georgia Form 500. Similar to Federal income tax rules,
most of these Georgia taxpayers are only allowed to deduct
the applicable Georgia personal exemption and expenses
reflected on Form 1040NR. Most taxpayers are not allowed
to take the standard deduction and are allowed only limited
itemized deductions as shown on Form 1040NR, Schedule A.
Military Personnel
Military personnel who are legal residents of Georgia are
subject to Georgia income tax on all income regardless of
the source or where earned, unless specifically exempt by
Georgia law. Military personnel who serve outside of the
continental U.S. may file t heir G eorgia i ncome t ax return
within six months after they come back to the continental
U.S. No penalties or interest will accrue during this period.
Members of the National Guard or Air National Guard who
are on active duty for a period of more than 90 consecutive
days are allowed a tax credit against their individual income
tax. The credit cannot exceed the amount expended for
qualified life insurance premiums or the taxpayer's income
tax liability and should be claimed on Form IND-CR 203.
Nonresidents. Military person who are not legal residents
of Georgia are only required to file a Georgia income tax
return if the person earns income during their off duty hours
from sources in Georgia or if the person has income from
property located in Georgia or the person receives business
income from Georgia sources. If required, nonresident
military personnel should file Georgia Form 500 and use
Schedule 3 to calculate Georgia taxable income. (See
pages 18-19 for instructions on completing Schedule 3.)
Spouses of Military Personnel. A spouse of a military person
shall neither lose or acquire their legal residence solely to be
with the military person serving in compliance with military
orders but this provision only applies if the legal residence of
the spouse is the same as the military person or the spouse
of a military person has elected to use the same residence
for purposes of taxation as the military person. Income for
services performed by the spouse of a military person shall
not be considered Georgia income if the military person is not
a legal resident of Georgia but this only applies if the spouse
is in Georgia solely to be with the military person serving in
compliance with military orders and the legal residence of
the spouse is the same as the military person or the spouse
of a military person has elected to use the same residence
for purposes of taxation as the military person. The affected
taxpayer should exclude the income on Schedule 3, Column
C, Line 7 of the Form 500. No amounts should be entered

on Schedule 3, Column A, Line 7 of Georgia Form 500.
Combat Zone Pay
Military income earned by a member of the National Guard
or any reserve component of the armed services while
stationed in a combat zone or stationed in defense of the
borders of the United States pursuant to military orders
is not subject to Georgia income tax. The exclusion from
income is only with respect to military income earned
during the period covered by such military orders. A copy
of the Federal return must be enclosed with the Georgia
return to claim this exclusion. The exclusion is limited to
the amount included in Federal Adjusted Gross Income.
Estimated Tax
Estimated tax is required for each individual subject to Georgia
income tax who reasonably expects to have gross income
during the year which exceeds (1) personal exemption, plus
(2) credits for dependents, plus (3) estimated deductions,
plus (4) $1,000 of income not subject to withholding.
Estimated tax required from persons not regarded as farmers
or fishermen shall be filed on or before April 15 of the
taxable year, except if the estimated tax requirements are first
met on or after April 1 and before June 1, estimated tax must
be filed by June 15; on or after June 1 but before September
1, by September 15; and on or after September 1, by
January 15 of the following year. Individuals filing on a fiscal
year basis ending after December 31 must file on
corresponding dates.
Other State’s Tax Return
If you claim a credit for taxes paid to another state(s),
you must include a copy of your return filed with that
state along with your Georgia return. No credit for
taxes paid to another state will be allowed unless the
other state’s return is enclosed with the Georgia return.
Filing for Dependents
If the parent or guardian prepared the minor child or
dependent’s return, the Department recommends that the
parent or guardian check the box allowing the preparer
to discuss the return with the Department. If this is not
done and the parent did not sign the return on the child's
behalf as allowed by IRS Publication 929, then the parent
or guardian will have to be included on a Power of Attorney
(Form RD-1061) prepared by the minor in order for the
Department to discuss the return with the parent or guardian.
Filing for Deceased Taxpayers
The surviving spouse, administrator, or executor may
file a return on behalf of a taxpayer who dies during the
taxable year. When filing, use the same filing status
that was used on the Federal income tax return. The
due date for filing is the same as for Federal purposes.
Note: To have a refund check in the name of a deceased
taxpayer reissued, mail Georgia Form GA-5347, a copy of
the death certificate, and the information specified on Georgia
Form GA-5347 along with the check to the address on the form.

Page 10

FORM 500 INSTRUCTIONS
Include all completed schedules with your Georgia return.
Complete your Federal return before starting your Georgia return. Your Federal return contains information that should
be included on your Georgia return.

Form 500 Instructions
Lines 1 - 3: Print or type your name(s), address (including apartment number if applicable) and Social Security
Number(s) in the spaces provided. Do not write both a
street address and post office box in the address field.
Line 4: Enter the appropriate number for your residency
status.
 1 - You lived in Georgia the entire year, regardless of
temporary living arrangements.
 2 - You lived in Georgia part of the year. Note: List the
dates you lived in Georgia and you must complete Schedule
3 to calculate Georgia taxable income.
 3 - You did not live in Georgia or if one spouse is a resident
and one is a part-year resident or nonresident. Note: You must
complete Schedule 3 to calculate Georgia taxable income.
Line 5: Enter the appropriate letter for your filing status. Use the same status that is on your Federal return.
 A - Single
 B - Married Filing Joint;
 C - Married Filing Separate;
 D - Head of Household or Qualifying Surviving
Spouse*
*Use filing status D if your filing status is qualifying surviving
spouse on your Federal return.
Georgia recognizes same sex marriage.
Exceptions:
 If one spouse is a resident and the other is a nonresident
without any Georgia-source income, your Georgia return may
be filed jointly or separately with each spouse claiming the
appropriate exemptions and deductions.
Line 6a - 6b: Check the appropriate box
 6a for yourself
 6b if you claim your spouse and you file jointly.
Line 6c: Enter the total number of exemption boxes checked.
Lines 7a - c: Dependents
 7a: Enter the total number of qualified dependents. Do
not include yourself, your spouse, and/or dependent unborn children. Georgia follows the Federal rules for qualified
dependents. If married filing separate, only one spouse may
claim the dependent and the prior Federal rules (those when
Federal exemptions for dependents) are used to determine
who is entitled to claim the dependent.
 7b: Enter the number of unborn dependents. Note: The
Unborn Dependent Exemption cannot be claimed if the child
is born during the same tax year. If the child is born during the
tax year include that dependent on Line 7a. not 7b. For more
information see https://dor.georgia.gov/life-act-guidance.
Page 11

 7c: Enter the total number of dependents. Add Line 7a
and Line 7b for the total for 7c.
 7d: List the requested information about your qualified
dependents in the spaces provided. Do not include yourself,
spouse and/or unborn dependents in this section.
Line 8: Enter Federal adjusted gross income from Form
1040. Do not use Federal taxable income.
Note: If the amount on Form 500, Line 8 is greater than
$40,000 or less than the total income on your W-2s
you must submit a copy of your Federal Form 1040
pages 1, 2 and Schedule 1. The Federal Schedule 1 must
be included if a copy was submitted with your Federal
return.
Line 9: You must adjust your Federal adjusted gross
income if you have income that is taxable by the Federal
Government but not taxable to Georgia or vice versa. You
must document your adjustments on Schedule 1 and enter
the total amount here. There are certain adjustments that
must be added if applicable and some adjustments that
may be subtracted. Please see pages 14 - 16 for more
information about additions and subtractions.
Note: Part-year residents and nonresidents must skip
Lines 9 -14 and follow the Schedule 3 instructions that
begin on page 18.
Line 10: Enter Georgia adjusted gross income (net total of
Line 8 and Line 9).
Lines 11a-c: Standard Deductions (Leave Lines 11ac blank if you itemize deductions)
Note: If you use the standard deduction on your Federal
return, you must use the Georgia standard deduction on
your Georgia return.
Line 11a: Enter the standard deduction that
corresponds to your marital status.





Single/Head of Household/Qualifying
Surviving Spouse............................ $5,400
Married Filing Separate................... $3,550
Married Filing Joint.......................... $7,100
Additional Deduction....................... $1,300

Line 11b: Enter any additional deductions on Line 11b.
Note: The additional deduction applies if you and/or your
spouse are age 65 or over and/or blind.
Line 11c: Enter the total standard deduction on Line 11c.
Lines 12a-c: Itemized Deduction (Leave Lines 12a-c blank
if you use the standard deduction)

FORM 500 INSTRUCTIONS (continued)
Note: If you itemize deductions on your Federal return, or if you 3. Income before GA NOL (Line 15a of Form 500)
are married filing separate and your spouse itemizes deductions,
____________
you must itemize deductions on your Georgia return. Include a
4. NOL from line 1 applied to current year
copy of Federal Schedule A with your Georgia return.
____________
Line 12a: Enter the itemized deductions from your Federal 5. NOL from line 2 applied to current year (cannot exceed
Schedule A.
80% of Line 3)	 ____________
Line 12b: Enter adjustments for income taxes other than 6. Total NOL applied - add Lines 4 and 5, also enter on Line
G e o r g i a a n d i n v e s t m e n t i n t e r e s t e x p e n s e f o r t h e 15b of Form 500 ____________
production of income exempt from Georgia tax.
Line 15c: Subtract Line 15b from Line 15a.
Line 12c: Subtract Line 12b from Line 12a, enter total.
Note: For all taxpayers (full year, part year, and nonresident),
if state & local income taxes were limited on the federal
return to $10,000 ($5,000 MFS), the following formula should
be used to determine the disallowed other state income
taxes: Other state income taxes divided by the total taxes on
line 5d of Schedule A multiplied by the lesser of the amount
on Line 5d of Schedule A or $10,000 ($5,000 if married filing
separate). For part year and nonresidents on the Schedule
3, the same computation should be used in arriving at the
amount of itemized deductions that would then be subject
to proration using the part-year/nonresident income ratio
on Form 500 Schedule 3 Line 9. Do not include state taxes
paid by entities that pay income tax at the entity level.

Line 16: Take the amount from Line 15c and use the Tax Rate
Schedule starting on page 59 to determine your tax liability.
Line 17: Complete the Low Income Credit Worksheet on
page 25 to determine your credit amount. Enter the amount
from Line 6 of the worksheet on the form.

Note: You may claim the low income credit if your Federal
adjusted gross income is less than $20,000 and you are
not claimed or eligible to be claimed as a dependent on
another taxpayer’s Federal or Georgia income tax return.
Part-year residents may only claim the credit if they were
residents at the end of the tax year. Taxpayers filing a
separate return for a taxable year in which a joint return
Line 13: Subtract Line 11c or 12c from Line 10, enter total.
could have been filed can only claim the credit that would
have been allowed had a joint return been filed. You cannot
Lines 14a-c: Exemption and Dependent Totals
Lines 14a: Multiply the number of exemptions on Line 6c by claim this credit if you are an inmate in a correctional
the filing status totals listed below and enter the total.
facility. This credit must be claimed on or before the end
 $2,700 for filing status: A - Single or D - Head of Household of the 12th month following the close of the tax year. The
credit cannot exceed the taxpayer’s income tax liability.
or Qualifying Surviving Spouse
 $3,700 for filing status: B - Married Filing Joint or C - Married
Filing Separate
Line 18: Enter the other state(s) tax credit used. If you paid
tax to more than one state, use the total of the other state’s
Line 14b: Multiply the number of dependents on Line 7c by
income and the worksheet on page 24 to calculate the Other
$3,000 and enter the total.
State’s Tax Credit.
Line 14c: Add Lines 14a and 14b.
Note: You must include a copy of the return filed with
Line 15a: Subtract Line 14c from Line 13 (or enter Schedule the other state(s) with your Georgia return or the credit
3, Line 14) to get your Georgia taxable income before Georgia will not be allowed.
Net Operating Losses (NOLs).
Line 19: Enter the amount of credits used from the last line of
the IND-CR Summary Worksheet. The IND-CRs are located
Line 15b: Georgia NOL Utilized
Net operating losses (NOLs) for tax years 2018 and later that between Schedule 3 and Schedule 4 of the Form 500. You
are applied to Georgia income cannot exceed 80% of Georgia must include any include any applicable IND-CR forms when
income before NOLs. Use the following worksheet to compute submitting your return.
the net operating losses that can be used in the current year.

Line 20: Enter the amount of credits used from Schedule
2. The return must be filed electronically if series 100 tax
credits are claimed or generated. If claiming credit code 125
(QEE) enter your Social Security Number and not the Federal
Employer Identification Number of the Student Scholarship
Organization. See page 26 for more information regarding
1. NOL carry forward available for current year from years credits.
before 2018	
____________
Note: Before determining how much NOL can be
carried from the current year to the next year, the
income from the current year must be recomputed
using Schedule 4 and the related instructions.

2. NOL carry forward available for current year from years 2018 Line 21: Add Lines 17-20 to get the amount for total credits
used. The amount cannot exceed Line 16.
and later	
____________
Page 12

FORM 500 INSTRUCTIONS (continued)
Line 22: Subtract Line 21 from Line 16. If zero or less,
enter zero.
Line 23: Only enter Georgia income tax withheld from W-2s
and 1099s. Attach/Include a copy of these statements with
your return or this amount will not be allowed.
Line 24: Enter Georgia income tax withheld on G2-A, G2FL, G2-LP, and/or G2-RP. Attach/Include a copy of these
statements with your return or this amount will not be allowed.
Note: Please complete the Income Statement Details
Section. Only report income on which Georgia
tax was withheld. Enter income form W-2s, 1099s,
and G-2As on Line 4 GA Wages/Income. For other
statements complete Line 4 using the income
reported from Form G2-RP Line 12 or Line 13;
Form G2-LP Line 11, or for Form G2-FL enter zero.
Line 25: Enter estimated tax payments, including amounts
credited from a previous return, and any payments made
electronically or with Form IT- 560.
Line 26: Enter Schedule 2B Refundable Tax Credits. The
return must be filed electronically to claim these credits.
Line 27:
amount.

Add Lines 23 through 26 and enter the total

Line 45a: Complete the direct deposit information
 Check the appropriate box (Checking or Savings) for the type
of account. Do not check more than one box.
You must check the correct box to ensure your direct deposit is
accepted.
 Enter your nine digit routing number. The first two digits must
be 01 through 12 or 21 through 32. Ask your financial institution
for the correct routing number to enter on Line 45a if:
• The routing number on a deposit slip is different from the routing
number on your checks.
• The deposit is to a savings account that does not allow you to
write checks or
• Your checks state they are payable through a financial institution
different from the one at which you have your checking account.
 Enter your account number from left to right and leave unused
boxes blank. Include hyphens, but omit spaces and special symbols.
The account number can be up to 17 characters (both numbers
and letters).

Example

On the sample check below, the routing number is 807100013. John
Doe would use that routing number unless their financial institution
instructed them to use a different routing number for direct deposits. The account number is 978653421. Do not include the check
number. On the sample check below, the check number is 5678.

Line 28: If Line 22 is more than Line 27, subtract Line 27
from Line 22 to calculate the balance due.
Line 29: If Line 27 is more than Line 22, subtract Line 22
from Line 27 to calculate your overpayment.
Line 30: Enter the amount you want credited to next year's
estimated tax.
Lines 31 - 40: Enter the amount you want to donate to the
charities listed on the form. Amounts must be rounded to
the nearest dollar and cannot be less than $1.
Line 41: Enter the estimated tax penalty from Form 500 UET.
If you were eligible for an estimated tax penalty exception
on Form 500 UET, please check the “500 UET Exception
Attached” box, include the revised penalty on Line 40 of the
Form 500, and include the 500 UET with the return. If the
revised penalty is zero, enter zero.
Line 42: Enter the amount of late payment and/or late filing
penalty.
Line 43: Enter the amount of interest.
Line 44: Add Lines 28 and 31 through 43 and enter the total
amount due. Mail your return, 525-TV payment voucher,
and payment to the address on the Form 500.
Line 45: Subtract the sum of Lines 30 through 43 from Line
29 and enter the amount to be refunded to you.
Direct Deposit Option
Note: If you are a first time Georgia filer or if you
have not filed Georgia taxes in five or more years,
you will receive your refund via paper check. This
applies both to electronic and paper return filers.

Direct Deposit Rejects

If any of the following apply, your direct deposit request may be
rejected and a check will be mailed:
 Any numbers or letters are crossed out or whited out.
 An invalid checking, savings, or routing number was entered.

Your financial institution will not allow a joint refund to be
deposited to an individual account. The State of Georgia is not
responsible if a financial institution rejects a direct deposit.

Signature Section
Please sign and date your return. If filing a joint return you and your
spouse must sign and date the return. The paid preparer should also
sign the return. If the taxpayer and/or spouse is deceased, check the
box under the taxpayer's signature and provide the date of death.

Page 13

SCHEDULE 1 INSTRUCTIONS
Schedule 1 Instructions

Lines 1 - 6: Enter your additions to income (see Additions
section for detailed information).
Lines 7 - 13: Enter your subtractions from income (see
Subtractions section for detailed information).
Note: A taxpayer with multiple additions (Schedule 1,
Line 5) and subtractions (Schedule 1, Line 12) should
include a separate worksheet listing all adjustments and
write the total for those line respectively.
Lines 14: Enter your total net adjustments here and on Line
9 of page 2 of Form 500.
Note: Please complete and include your Retirement
Income Exclusion calculation (Page 2 of Schedule
1), if you entered information on Schedule 1, Lines
7a, 7d, 7c, and/or 7f. Also, please complete and
include the Military Retirement Income Exclusion
calculation (Page 3 of Schedule 1) if you entered
information on Schedule 1, Lines 7b and/or 7e.
Additions
The following adjustments must be added if applicable
1. Interest received from non-Georgia municipal
bonds and dividends received from mutual funds that
derived income from non-Georgia municipal bonds.
These may only be reduced by direct and indirect
interest expenses which are attributable to the income
and which have not already been deducted in arriving at
Federal adjusted gross income or itemized deductions.
2. Loss carryovers from years when you were not subject
to Georgia income tax.
3. Lump sum distributions from employee benefit plans
reported on IRS Form 4972.
4. Depreciation because of differences in Georgia and
Federal law during tax years 1981 through 1986.
5. Adjustments due to Federal tax changes (see dor.
georgia.gov/rules-policies/income-tax/income-tax-federaltax-changes).
6. Net operating loss carryover deducted on federal return.
7. Payments for more than $600 in a taxable year made to
employees which are not authorized employees and which are
not excepted by Code Section 48-7-21.1. An authorized employee is someone legally allowed to work in the United States.
8. Taxable portion of withdrawals on the Path2College
529 Plan (see Regulation 560-7-4-.04).
9. For the Qualified Education Expense credit, the deduction relating to the credit. See Regulation 560-7-8-.47.
10. For the Land Conservation credit, the deduction

relating to the credit. See Regulation 560-7-8-.50 for more
information.
11. For the Qualified Rural Hospital Organization Expense
tax credit, the deduction relating to the credit. See Regulation
560-7-8-.57 for more information.
12. For the Qualified Education Donation tax credit, the
deduction relating to the credit. See Regulation 560-7-8-.60
for more information.
13. For the Qualified Foster Care Donation tax credit, the
deduction relating to the credit. See regulation 560-7-8.68
for more information.
14. For the Qualified Law Enforcement Donation tax credit,
the deduction relating to the credit. See regulation 560-7-8.68
for more information.
Note: If the contribution relating to the above credits is
treated as a deduction of state taxes, then the following formula should be used to determine the disallowed
state income taxes: Contribution treated as state income
taxes divided by the total taxes on Line 5d of Schedule
A multiplied by the lesser of the amount on Line 5d of
Schedule A or $10,000 ($5,000 if Married Filing Separate).
Note: When other state income taxes and when the
contribution relating to the above credits is treated as a
deduction of state taxes, the federally taxable state income tax refund that is later received may be eligible to
be reduced. The reduction equals the federally taxable
refund times the proportion that was used to figure out
how much of the deduction had to be reduced in the year
of the deduction (Contribution treated as state income
taxes divided by the total taxes on Line 5d of Schedule A).
Note: If a taxpayer receives a state refund and is not
required to include the refund in Federal AGI since they
were subject to Federal Alternative Minimum Tax, they are
not required to include the refund for Georgia purposes.
Surplus refunds are not taxable for Georgia individual
income tax purposes but may be federally taxable.
Note: Georgia does not allow the 20% qualified
business income deduction. (I.R.C. Section 199A).
However, since Georgia starts with Federal AGI,
no adjustment is necessary on the Georgia return.
15. For owners of a pass-through entity or entities
that have elected to pay tax at the entity level see 5607-3-.03(9)(a). Note: Enter your allocable share of
loss that was apportioned and allocated at the entity
level on Schedule 1, Line 5. Use description PTEADD.
Subtractions
The following adjustments may be SUBTRACTED:
1. Retirement income. The maximum retirement
income exclusion is $35,000 for taxpayers who are:
(A) 62 - 64 years of age, or

Page 14

Schedule 1 Subtractions (continued)

(B) less than 62 and permanently disabled to such an
9. Income tax refunds from states other than Georgia included
extent that they are unable to perform any type of
in Federal adjusted gross income. Do not subtract Georgia
gainful employment.
income tax refunds.
The maximum retirement income exclusion is $65,000 for
taxpayers who are 65 years of age or older.
10. Income from any fund, program or system which is
specifically exempted by Federal law or treaty.
The exclusion is available for the taxpayer and his/her spouse;
however, each must qualify on a separate basis. If both spouses 11. Adjustment to Federal adjusted gross income for Georgia
qualify, each spouse may claim the amounts above. Income resident shareholders for Subchapter S income where the Sub
from property that is jointly owned should be allocated to each S election is not recognized by Georgia or another state or for
taxpayer at 50% of the total value. Up to $4,000 of the maximum Georgia resident partners in a partnership or members in an LLC
allowable exclusion may be earned income. See the instructions where such entities' income has been taxed at the entity level by
on page 17 and complete Form 500, Schedule 1, Page 2.
another state.
Part-year and nonresident filers are required to prorate the This adjustment is only allowed for the portion of income on which
amount of retirement exclusion. For more information on how the tax was actually paid by the corporation or partnership to
to calculate the prorated exclusion amount, see the instructions another state(s).
on page 17.
The subtraction amount is calculated as follows:
2. Military Retirement Income. Up to $17,500 of military retire- 1. Determine the Georgia taxable net income received from
ment income can be excluded for taxpayers under 62 years of the entity. This should include any income, gains, losses and
age. An additional $17,500 can be excluded for such taxpayers deductions from the entity which are separately reported and
included on the taxpayer's return including any guaranteed
with more than $17,500 of earned income in Georgia.
payments received from a partnership. This does not include
The exclusion is available for the taxpayer and his/her spouse; wages paid to the partner, shareholder, or member. However, if
however, each must qualify on a separate basis. If both spouses such wages are taxed by another state, the partner, shareholder,
or member may be eligible for the other state(s) tax credit.
qualify, each spouse may claim the amounts above.
2. Multiply the above income by the entity's apportionment ratio
Part-year residents and nonresidents are allowed to claim the in such other state.
military retirement income exclusion of $17,500 against the total
military retirement income they received, but these taxpayers can Only states which have a tax on the entity which is on or measured
only claim the additional military retirement exclusion of $17,500 by income are eligible for the subtraction. Income subject to
after meeting the earned income threshold with Georgia-source the Texas Margin Tax is eligible for this subtraction. Please see
Code Section 48-7-27(d) and Regulation 560-7-4-.01 for more
earned income.
information.
3. Depreciation because of differences in Georgia and Federal
In cases where the Sub S election is recognized by another state(s)
law during tax years 1981 through 1986.
the income should not be subtracted. Credit for taxes paid to other
4. Interest and dividends on U.S. Government bonds and other states may apply.
U.S. obligations. These must be reduced by direct and indirect
12. Adjustment for teachers retired from the Teacher’s Reinterest expenses which are attributable to the income.
tirement System of Georgia for contributions paid between July
Note: Interest received from the Federal National Mortgage 1, 1987 and December 31, 1989 that were reported to and taxed
Association, Government National Mortgage Association, by Georgia.
Federal Home Loan Mortgage Corporation, and from
repurchase agreements is taxable and should not be subtracted. 13. The amount claimed by employers in food and beverage
establishments who took a credit instead of a deduction on the
5. Social Security or Railroad Retirement (Tier 1 and Tier Federal return for FICA tax paid on employee cash tips.
2) paid by the Railroad Retirement Board included in Federal
adjusted gross income.
14. An adjustment of 10% of qualified payments to minority
subcontractors or $100,000, whichever is less, per taxable year
6. Salaries and wages reduced from Federal taxable income by individuals, corporations or partnerships that are party to state
because of the Federal Jobs Tax Credit.
contracts. For more information call the Department of Administrative Services at 404-657-6000 or visit their website: http://doas.
7. Individual retirement account, Keogh, and SEP plan ga.gov/state-purchasing/suppliers
withdrawals where tax has been paid to Georgia because of
the difference between Georgia and Federal law for tax years 15. Deductible portion of contributions to the Path2College 529
1981 through 1986.
Plan. The deduction is limited on a return to the amount contributed but cannot exceed $4,000 per beneficiary unless a married
8. Dependent’s unearned income included in parents’ filing joint return is filed then the amount cannot exceed $8,000
Federal adjusted gross income.
per beneficiary.
Page 15

Schedule 1 Subtractions (continued)

16. Adjustments due to Federal tax changes (see dor.georgia.gov/rules-policies/income-tax/income-tax-federal-tax-changes).
17. Combat Zone Pay Exclusion. See page 10 for more information.
18. Organ Donation Expense Deduction up to $25,000 of unreimbursed travel expenses, lodging expenses and lost
wages incurred as a direct result of a taxpayer’s donation of all or part of a kidney, liver, pancreas, intestine, lung or
bone marrow during the taxable year.
19. An amount equal to 100 percent of the premium paid by the taxpayer during the taxable year for high deductible health plans
to the extent the deduction has not been included in federal adjusted income and the expenses have not been provided from a health reimbursement arrangement and have not been included in itemized deductions. In the event the
taxpayer claims the expenses as itemized deductions, the taxpayer should multiply the expense by the ratio of total
allowed itemized deductions after the federal limitation to the total allowed itemized deductions before the federal limitation to determine the amount that is not allowed to be deducted pursuant to this paragraph. For example, the taxpayer
has $1,000 in high deductible health insurance premiums. They also have $7,000 of other medical expenses which
means they have total medical expenses of $8,000. After the limitation, the taxpayer is only allowed to deduct $2,000 of
medical expenses. The $1,000 deduction must be reduced by $250 ($2,000/$8,000 x $1,000), and the taxpayer is allowed
to deduct $750.
20. Federally taxable interest received on Georgia municipal bonds designated as “Build America Bonds” under
Section 54AA of the Internal Revenue Code of 1986. “Recovery Zone Economic Development Bonds” under Section 1400U-2
Code are considered “Build America Bonds” for this purpose.
21. Federally taxable interest received on Georgia municipal bonds issued by the State of Georgia and certain authorities or agencies of the State of Georgia for which there is a special exemption under Georgia law from Georgia tax on
such interest.
22. Interest eliminated from federal itemized deductions due to the Federal Form 8396 credit.
23.

pursuant

are included in the taxpayer's federal adjusted gross income and are not otherwise exempt from the tax imposed by this
publicly employed emergency medical technician, or a surviving spouse of such an individual, receiving payments pursuant
damage, or death occurring in the line of duty.
24
to the extent such amounts are included in the taxpayer's federal adjusted gross income and are not otherwise exempt on
the Georgia return.

to the extent such deduction has not been included in the taxpayer's federal adjusted gross income and is not otherwise
deductible on the Georgia return.
26. Income received by a surviving family member that is based on the service record of a deceased veteran without
regard to the age of the surviving family member.
27. For taxable years beginning on or after January 1, 2019, and ending on or before December 31, 2023, a subtraction is allowed for certain disaster relief payments. The payments that qualify are those that are received from a federal
disaster relief or assistance grant program administered by Georgia or its instrumentalities or the United States Department
Hurricane Michael during the 2018 calendar year. Also, the subtraction is only allowed to the extent the income is included
in federal adjusted gross income. Finally, any amounts that came from a pass-through entity are also eligible.
28. For owners of a pass-through entity or entities that have elected to pay tax at the entity level, see Rule 560-7-3-.03(9)
(a). Note: Enter your allocable share of income that was taxed at the entity level on Schedule 1, Line 12. Use description
PTEDED. For more information see https://dor.georgia.gov/hb-149-pass-through-entity-tax-faq.
Note regarding Achieving Better Life Experience (ABLE) Programs - No Deduction is allowed as a subtraction item for
any contribution made pursuant to the Georgia ABLE Program or any other state ABLE programs.
Page 16

RETIREMENT INCOME EXCLUSION

Social Security and Railroad Retirement paid by the Railroad Retirement Board, exempt interest, or other income that is not
taxable to Georgia should not be included in the retirement income exclusion calculation. Income or losses should be allocated
to the person who owns the item. If any item is held jointly, the income or loss should be allocated to each taxpayer at 50%.
Part-year residents and nonresidents must prorate the retirement income exclusion. The earned income portion and the unearned income portion must be separately prorated. The earned income portion shall be prorated using the ratio of Georgia
source earned income to total earned income computed as if the taxpayer were a resident of Georgia for the entire year.
The unearned portion shall be prorated using the ratio of Georgia source unearned retirement income to total unearned
retirement income computed as if the taxpayer were a resident of Georgia for the entire year.
*Retirement income does not include income received directly or indirectly from lotteries, gambling, illegal sources or similar
income.
** Rental, Royalty or Partnership income that is subject to FICA tax or Self employment tax should be included on line 2 not
Line 13. Trade or business income from an S Corp in which the taxpayer or their spouse materially participated should be
included on Line 2 not