Georgia Credits and Deductions (2024)¶
Quick Reference¶
Standard Deduction (2024)¶
Single: $12,000
Married Filing Jointly: $24,000
Married Filing Separately: $12,000
Head of Household: $18,000
Additional for Age 65+ or Blind: $1,300 (single) or $1,050 (married) per person
Personal Exemptions (2024)¶
Personal Exemption: - Single: $7,400 - MFJ: $7,400 (combined) - MFS: $3,700 - HOH: $7,400
Dependent Exemptions: $4,000 per dependent
Major Credits¶
Low Income Credit: - $35 (single) - $70 (married filing jointly)
Dependent Care Credit: Percentage of federal credit
Adoption Credit: For qualified adoption expenses
Details¶
Standard Deduction¶
Georgia follows federal amounts (2024):
Basic amounts: - Single: $12,000 - MFJ: $24,000 - MFS: $12,000 - HOH: $18,000
Additional standard deduction: - Age 65 or older: Additional $1,300 (single/HOH) or $1,050 (married) - Blind: Additional $1,300 (single/HOH) or $1,050 (married) - Can claim both if age 65+ AND blind
Example (single, age 68): - Basic standard deduction: $12,000 - Additional for age 65+: $1,300 - Total: $13,300
Example (MFJ, both age 70): - Basic standard deduction: $24,000 - Additional for husband 65+: $1,050 - Additional for wife 65+: $1,050 - Total: $26,100
Cannot claim if: - Itemizing deductions instead - Dependent on another's return (limited deduction)
Itemized Deductions¶
Georgia allows itemizing:
If itemize on federal, can itemize on GA: - Use federal itemized deductions as starting point - Make GA-specific adjustments - Report on Form 500, Schedule 2
Common itemized deductions:
Medical expenses: - Expenses exceeding 7.5% of AGI - Same as federal
State and local taxes (SALT): - IMPORTANT: GA allows full SALT deduction - No $10,000 federal cap for GA purposes - Can deduct full amount of state/local taxes paid - Major difference from federal
Home mortgage interest: - Interest on acquisition debt - Same limits as federal
Charitable contributions: - Cash contributions - Non-cash contributions - Follow federal rules
Casualty and theft losses: - Federally declared disasters - Follow federal rules
Miscellaneous itemized deductions: - GA does not allow (eliminated federally 2018-2025)
GA-specific adjustments:
Add back: - GA income taxes (cannot deduct GA tax from GA income)
Other adjustments: - See Schedule 2 instructions
Standard vs. itemized: - Choose whichever is larger - Most taxpayers use standard deduction - High SALT payers may benefit from itemizing (no cap)
Personal Exemptions¶
Georgia still has exemptions (unlike federal 2018-2025):
Personal exemption amounts: - Single: $7,400 - MFJ: $7,400 (combined for both spouses) - MFS: $3,700 - HOH: $7,400 - Qualifying surviving spouse: $7,400
Dependent exemptions: - $4,000 per dependent - Same dependents as federal return - Children, qualifying relatives
Example (MFJ with 3 children): - Personal exemption: $7,400 - Dependent exemptions: $12,000 (3 × $4,000) - Total exemptions: $19,400
No phase-out: - Exemptions available at all income levels - No reduction for high earners
Low Income Credit¶
Refundable credit for low-income taxpayers:
Credit amounts (2024): - Single: $35 - Married filing jointly: $70 - Married filing separately: $35 - Head of household: $70
Income limits:
Single: - Maximum income: $25,000 (federal AGI)
Married filing jointly: - Maximum income: $50,000 (federal AGI)
Head of household: - Maximum income: $50,000 (federal AGI)
Phase-out: - Credit phases out as income approaches limit - Full credit available below certain threshold
Refundable: - If credit exceeds tax, receive refund - Important for low-income taxpayers
Child and Dependent Care Credit¶
Based on federal credit:
Calculation: - Start with federal child and dependent care credit - GA credit = percentage of federal credit - Percentage varies by income
Income-based percentage: - Lower income: higher percentage - Higher income: lower percentage - Ranges from 0% to 30% of federal credit
Requirements: - Same as federal credit - Expenses for care of child under 13 or disabled dependent - Care to enable work or job search
Non-refundable: - Cannot exceed GA tax liability - Cannot create refund
Adoption Credit¶
Credit for qualified adoption expenses:
Amount: - Up to $2,000 per adoption - For qualified adoption expenses
Qualifying expenses: - Adoption fees - Attorney fees - Court costs - Travel expenses - Other expenses directly related to adoption
Special needs adoption: - May be eligible even without expenses - Adoption of GA foster child with special needs
Non-refundable: - Cannot exceed tax liability - Can carry forward unused credit up to 5 years
Other Credits¶
Jobs Tax Credit: - For businesses, not individuals - Not applicable to Form 500
Historic Rehabilitation Credit: - For qualified rehabilitation of historic property - Pass-through to individual owners
Film Tax Credit: - For investment in GA film productions - Can be transferred/sold
Qualified Education Expense Credit: - For contributions to Student Scholarship Organizations - Dollar-for-dollar credit (subject to limits) - Maximum $1,000 (single) or $2,500 (MFJ)
Rural Physician Tax Credit: - For physicians practicing in rural areas - $5,000 per year credit
Disabled Person Home Purchase or Retrofit Credit: - For purchase of accessible home or retrofitting existing home - Up to $500 credit
Credit for Taxes Paid to Other States¶
If GA resident with income from other states:
Credit calculation: - Tax paid to other state - Limited to GA tax on same income - Report on Form 500, Schedule 3
Example: - GA resident works part-time in FL - FL has no income tax - No credit (no tax paid)
Example: - GA resident works in NC - Earns $20,000 in NC - Pays $1,000 NC tax - GA tax on that income: $1,150 - Credit: $1,000 (amount paid to NC) - Net GA tax on NC income: $150
Limitations: - Cannot reduce GA tax below zero - Only for income also taxed by GA - No credit if other state gives refund
Above-the-Line Deductions (Federal AGI Adjustments)¶
GA uses federal AGI:
Federal adjustments apply: - Educator expenses - HSA contributions - Self-employed SEP, SIMPLE, qualified plans - Self-employed health insurance - Student loan interest - Alimony paid (pre-2019 divorces)
Result: - Federal AGI already reflects these deductions - GA starts with federal AGI - No separate GA above-the-line deductions (except GA-specific subtractions)
Georgia-Specific Subtractions¶
Additional subtractions from federal AGI:
Retirement income exclusion: - See retirement-income.md - Up to $35,000 or $65,000 depending on age
Social Security benefits: - Fully exempt - Subtract from federal AGI
Georgia lottery winnings: - Exempt from GA tax - Subtract if included in federal AGI
Interest on US obligations: - US Treasury bonds - US savings bonds - Exempt from state tax
Income Subject to GA Tax¶
After all deductions and exemptions:
Calculation: - Federal AGI - Plus: GA additions - Minus: GA subtractions - = GA AGI - Minus: Standard deduction OR itemized deductions - Minus: Personal exemptions - = GA taxable income
Example (Single, age 40, $75,000 income): - Federal AGI: $75,000 - GA additions: $0 - GA subtractions: $0 - GA AGI: $75,000 - Standard deduction: -$12,000 - Personal exemption: -$7,400 - GA taxable income: $55,600 - GA tax: ~$3,150 (using 2024 rates)
Example (MFJ, age 70, $100,000 income, $35,000 Social Security): - Federal AGI: $100,000 (includes portion of SS) - GA subtractions: -$65,000 retirement exclusion, -$35,000 Social Security - GA AGI: $0 - No GA tax due
Phase-Outs and Limitations¶
Standard deduction: - No phase-out - Available at all income levels
Personal exemptions: - No phase-out - Available at all income levels
Itemized deductions: - GA does not have itemized deduction phase-out (Pease limitation) - Can claim full amount - Except SALT add-back for GA taxes
Credits: - Some credits have income limits (low income credit) - Some credits are non-refundable (limited to tax liability)
Planning Strategies¶
Standard vs. itemized: - Compare amounts - High SALT states may benefit from itemizing on GA return - Even if taking standard on federal (due to $10,000 cap)
Timing income and deductions: - If near retirement age (62, 65), time income to maximize exclusion - Bunching charitable contributions if itemizing
Retirement distributions: - Take advantage of retirement income exclusion - Up to $35,000 or $65,000 tax-free for GA
Education credits: - Contribute to Student Scholarship Organization - Get dollar-for-dollar credit (up to limits)
Changes for Flat Tax (Future)¶
When flat tax implemented:
Deductions and exemptions likely to remain: - Standard deduction: yes - Personal exemptions: yes - Itemized deductions: yes
Credits likely to remain: - Most credits expected to continue - Helps reduce flat tax impact on lower earners
Net effect: - Taxable income = AGI - deductions - exemptions - Apply flat rate (5.39% eventually) - Subtract credits
Citations¶
Georgia Code: - O.C.G.A. § 48-7-27 - Tax computation, exemptions - O.C.G.A. § 48-7-29 - Deductions allowed - O.C.G.A. § 48-7-29.2 - Standard deduction - O.C.G.A. § 48-7-30 - Exemptions for dependents - O.C.G.A. § 48-7-29.8 - Low income credit - O.C.G.A. § 48-7-29.3 - Child care credit - O.C.G.A. § 48-7-29.16 - Adoption credit
Regulations: - Ga. Comp. R. & Regs. 560-7-8-.01 - Personal exemptions - Ga. Comp. R. & Regs. 560-7-8-.02 - Standard deduction - Ga. Comp. R. & Regs. 560-7-8-.09 - Itemized deductions
GA Department of Revenue: - Individual Income Tax Guide - Schedule 2 Instructions (Itemized Deductions) - Schedule 3 Instructions (Tax Credits) - https://dor.georgia.gov/
Forms: - Form 500 - Individual Income Tax Return - Schedule 1 - Adjustments to Income - Schedule 2 - Itemized Deductions - Schedule 3 - Tax Credits - IT-QEE - Qualified Education Expense Credit
Publications: - Instructions for Form 500 - Georgia Tax Credits Guide