A guide to filing a Georgia State Tax Return
The article works to explain who might be obligated to file a Georgia State Tax return and the basics of what Georgia State tax filers should know. We are a team of Chartered US tax accountants based in the US and London. The deadline for filing a Georgia state tax return matches the Federal Tax deadline, 15th April.
Filling requirements for Georgia State
How you are taxed will depend on your Georgia residency status and a number of other factors. Below we have summarised the different filing requirements by residency status. Military professionals who are residents of Georgia are also subject to Georgia income tax, unless they are specifically exempt by Georgia law.
Full Residents
As a full resident of Georgia State you are required to file a Georgia State Tax Return if any of the following apply to you:
· You are required to file a Federal Income tax return- As a US Expat this can vary as it can depend on whether you are in a certain income threshold.
· You have income subject to Georgia income tax but not subject to federal income tax
· Your income exceeds Georgia’s standard deduction and personal exemptions
You are required to file a Georgia State Tax return for as long as you are a legal resident of Georgia- even if you are not currently residing in the state.
Part-Year Resident
If you are a legal resident of Georgia for only part of the tax year and are required to file a federal income tax return, you will also be required to file a Georgia Form 500 Individual Income Tax Return. Page 6, Schedule 3 is used to determine the portion of your income that is taxable by Georgia State.
Non-Resident
Nonresidents who work in Georgia or receive income from Georgia sources and and are required to file a Federal Income Ta x return are required to file a Form 500 Individual Income Tax Return.
Examples of Georgia Sources of Income:
· Wages
· Georgia Lottery Winning s
· Income from flow through entities
· Rents
If you are a legal resident of another state, you are not required to file Georgia income tax return to file a Georgia income return if:
· Your only activity for financial gain or profit in Georgia consists of performing services in Georgia for an employer
· The compensation for services performed does not exceed the lesser of 5% of the wages in all places or $5,000.00
Payments for Georgia State Tax
Georgia State accepts individual income and estimated tax payments. While the usual modes of payment are accepted, Georgia also allows tax filers to pay tax owed in instalments. To pay tax owed in instalments, you must be able to meet the following criteria:
Returns for all years must be filed
Agreements are up to 60 months
Payments should be made through automatic debit
If tax payments are not paid by the statutory due date of the return, the amount due will be subject to interest and further fines.
Additional penalties may apply as follows:
Frivolous Return Penalty - $1,000. (A frivolous return is one that contains incorrect or insufficient information 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.
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 accruing for months beginning before July 1, 2016 accrues at the rate of 12 percent annually. Interest that accrues for months beginning on or after 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 will be adjusted in January of each subsequent calendar year based on the Federal Reserve Rate.