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ga-income-tax.md199 lines8.6 KB
v1Georgia (US)
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| 1 | --- |
| 2 | name: ga-income-tax |
| 3 | description: > |
| 4 | Georgia Individual Income Tax Return (Form 500) for sole proprietors and single-member LLCs. |
| 5 | Covers the flat 5.19% rate (tax year 2025), Georgia taxable income computation from federal AGI, |
| 6 | standard deduction, dependent exemption, and estimated tax. Trigger: taxpayer is a Georgia |
| 7 | resident or has Georgia-source income. |
| 8 | jurisdiction: US-GA |
| 9 | version: "0.1" |
| 10 | validation_status: ai-drafted-q3 |
| 11 | --- |
| 12 | |
| 13 | # Georgia Individual Income Tax Skill — Self-Employed / Sole Proprietor |
| 14 | |
| 15 | > **Scope.** This skill covers Georgia individual income tax for self-employed individuals and sole proprietors filing Form 500. Georgia has a flat income tax rate of 5.19% for tax year 2025. |
| 16 | > **Quality tier.** Q3 — AI-drafted with citations. Must be reviewed by a qualified professional before use. |
| 17 | |
| 18 | --- |
| 19 | |
| 20 | ## Section 1: Metadata |
| 21 | |
| 22 | | Field | Value | |
| 23 | |---|---| |
| 24 | | Jurisdiction | US-GA (Georgia) | |
| 25 | | Tax authority | Georgia Department of Revenue (GA DOR) | |
| 26 | | Filing portal | [Georgia Tax Center (GTC)](https://gtc.dor.ga.gov/) | |
| 27 | | Legislation citation | O.C.G.A. Title 48, Chapter 7 (Income Taxes) | |
| 28 | | Primary form | Form 500 (Individual Income Tax Return) | |
| 29 | | Filing deadline | April 15, 2026 (for tax year 2025) | |
| 30 | | Extension | Automatic with federal extension (attach Form 4868 or IRS confirmation); or use GA Form IT-303 | |
| 31 | | Version | 0.1 | |
| 32 | | Generated date | May 22, 2026 | |
| 33 | | Validation status | AI-drafted — Q3 | |
| 34 | |
| 35 | ### Sources consulted |
| 36 | |
| 37 | - Georgia DOR — 2025 IT-511 Individual Income Tax Booklet: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download |
| 38 | - Georgia DOR — Important Tax Updates: https://dor.georgia.gov/taxes/important-tax-updates |
| 39 | - O.C.G.A. § 48-7-20 (tax rate): as amended by HB 111 (signed April 2025) |
| 40 | - NerdWallet — Georgia State Income Tax: https://www.nerdwallet.com/taxes/learn/georgia-state-tax |
| 41 | - BlueWave HR — Georgia Flat Income Tax 2026: https://bluewavehr.com/blog/georgia-flat-income-tax-2026.html |
| 42 | |
| 43 | --- |
| 44 | |
| 45 | ## Section 2: Quick reference — rates and thresholds |
| 46 | |
| 47 | ### Tax year 2025 rate |
| 48 | |
| 49 | | Rate | Applies to | |
| 50 | |---|---| |
| 51 | | 5.19% (flat) | All Georgia taxable income | |
| 52 | |
| 53 | Source: O.C.G.A. § 48-7-20, as amended by HB 111 (2025). Rate reduced from 5.39% (2024) to 5.19% (2025). |
| 54 | |
| 55 | **2026 rate:** Under HB 111, the rate automatically drops by 0.10% per year until reaching 4.99%, subject to revenue targets. Expected 2026 rate is 5.09% (pending Georgia Department of Audits certification). |
| 56 | |
| 57 | ### Standard deduction (tax year 2025) |
| 58 | |
| 59 | | Filing status | Standard deduction | |
| 60 | |---|---| |
| 61 | | Single | $12,000 | |
| 62 | | Married filing jointly | $24,000 | |
| 63 | | Married filing separately | $12,000 | |
| 64 | | Head of household | $12,000 | |
| 65 | |
| 66 | ### Dependent exemption |
| 67 | |
| 68 | | Item | Amount | |
| 69 | |---|---| |
| 70 | | Dependent exemption (per dependent) | $4,000 | |
| 71 | | Personal exemption | None (eliminated after 12/31/2023) | |
| 72 | |
| 73 | ### Filing thresholds |
| 74 | |
| 75 | You must file Georgia Form 500 if: |
| 76 | - You are required to file a federal income tax return, OR |
| 77 | - You have income subject to Georgia tax but not federal tax, OR |
| 78 | - Your gross income exceeds $24,000 (MFJ) or $12,000 (all other filers) |
| 79 | |
| 80 | --- |
| 81 | |
| 82 | ## Section 3: How this skill works with the federal return |
| 83 | |
| 84 | **Starting point:** Georgia begins with federal adjusted gross income (AGI) from federal Form 1040, Line 11. |
| 85 | |
| 86 | ### Key additions to Georgia income (Schedule 3) |
| 87 | - Interest on obligations of other states (not Georgia or federal) |
| 88 | - Bonus depreciation add-back (Georgia does NOT conform to federal §168(k) bonus depreciation) |
| 89 | - Other state-specific additions |
| 90 | |
| 91 | ### Key subtractions from Georgia income (Schedule 3) |
| 92 | - Social Security benefits (Georgia fully exempts Social Security from state income tax) |
| 93 | - Retirement income exclusion: up to $65,000 per taxpayer age 62–64; up to $65,000 per taxpayer age 65+ (includes retirement plan distributions, interest, dividends, capital gains, rental income) |
| 94 | - Georgia lottery winnings (first $5,000 exempt) |
| 95 | - Military retirement income (up to $35,000 for taxpayers under 62) |
| 96 | |
| 97 | ### Net result |
| 98 | Federal AGI ± Georgia modifications = Georgia adjusted gross income → minus standard deduction → minus dependent exemptions = Georgia taxable income → × 5.19% = Georgia income tax. |
| 99 | |
| 100 | --- |
| 101 | |
| 102 | ## Section 4: Self-employed specific rules |
| 103 | |
| 104 | ### QBI conformity |
| 105 | Georgia starts from federal AGI. The federal QBI deduction (§199A) is below AGI and does NOT flow into Georgia's computation. Georgia taxable income is computed independently. |
| 106 | |
| 107 | ### SE health insurance deduction |
| 108 | Already reflected in federal AGI. Flows through to Georgia automatically. |
| 109 | |
| 110 | ### Retirement contributions (SEP, SIMPLE, solo 401(k)) |
| 111 | Already reflected in federal AGI. No Georgia add-back required. |
| 112 | |
| 113 | ### Home office deduction |
| 114 | Already reflected in Schedule C → federal AGI. Flows through automatically. |
| 115 | |
| 116 | ### Estimated tax (Form 500-ES) |
| 117 | Self-employed individuals must make quarterly estimated payments if they expect to owe $1,000 or more after withholding and credits. |
| 118 | |
| 119 | Voucher due dates: April 15, June 15, September 15, January 15. |
| 120 | |
| 121 | Safe harbor: No penalty if payments equal at least 100% of prior year tax OR 90% of current year tax. |
| 122 | |
| 123 | ### Bonus depreciation add-back |
| 124 | Georgia has NOT adopted federal bonus depreciation under §168(k). Taxpayers who claimed bonus depreciation on the federal return must add back the excess over Georgia's allowed depreciation (typically straight-line MACRS) and then claim the Georgia depreciation as a subtraction in subsequent years. |
| 125 | |
| 126 | --- |
| 127 | |
| 128 | ## Section 5: Tier 1 rules — deterministic |
| 129 | |
| 130 | | Rule ID | Rule | |
| 131 | |---|---| |
| 132 | | GA-IT-1.01 | Georgia tax = Georgia taxable income × 5.19% | |
| 133 | | GA-IT-1.02 | Georgia taxable income = GA AGI − standard deduction − (dependent exemptions × $4,000) | |
| 134 | | GA-IT-1.03 | Social Security benefits are fully excluded | |
| 135 | | GA-IT-1.04 | No local/city income taxes anywhere in Georgia | |
| 136 | | GA-IT-1.05 | Form 500EZ discontinued — all filers use Form 500 (beginning tax year 2025) | |
| 137 | | GA-IT-1.06 | Georgia allows credit for taxes paid to other states (to prevent double taxation) | |
| 138 | | GA-IT-1.07 | Georgia does not have a state-level EITC | |
| 139 | | GA-IT-1.08 | Filing deadline same as federal: April 15 | |
| 140 | |
| 141 | --- |
| 142 | |
| 143 | ## Section 6: Tier 2 rules — requires judgment |
| 144 | |
| 145 | | Rule ID | Rule | Judgment needed | |
| 146 | |---|---|---| |
| 147 | | GA-IT-2.01 | Bonus depreciation add-back/recovery | Multi-year tracking required; Georgia allows recovery over asset life | |
| 148 | | GA-IT-2.02 | Part-year resident allocation | Prorate income for period of Georgia residency | |
| 149 | | GA-IT-2.03 | Retirement income exclusion eligibility | Verify age, income type, and per-taxpayer limits | |
| 150 | | GA-IT-2.04 | Credit for taxes paid to other states | Verify other state tax was actually paid on same income | |
| 151 | | GA-IT-2.05 | 2026 rate change | Monitor whether revenue targets are met for automatic rate reduction to 5.09% | |
| 152 | |
| 153 | --- |
| 154 | |
| 155 | ## Section 7: Supplier pattern library |
| 156 | |
| 157 | | Pattern on bank statement | Likely meaning | |
| 158 | |---|---| |
| 159 | | GA DEPT OF REVENUE | Georgia income tax payment | |
| 160 | | STATE OF GA TAX PMT | Georgia estimated tax payment | |
| 161 | | GEORGIA TAX REFUND | Georgia income tax refund | |
| 162 | | GA DOR GTC | Georgia Tax Center payment | |
| 163 | |
| 164 | --- |
| 165 | |
| 166 | ## Section 8: Form mapping |
| 167 | |
| 168 | | Georgia Form | Federal equivalent / Input | |
| 169 | |---|---| |
| 170 | | Form 500, Line 8 | Federal Form 1040, Line 11 (AGI) | |
| 171 | | Form 500, Schedule 3 | Georgia additions and subtractions | |
| 172 | | Form 500, Line 14 | Georgia adjusted gross income | |
| 173 | | Form 500, Line 15 | Standard deduction | |
| 174 | | Form 500, Line 16 | Dependent exemptions | |
| 175 | | Form 500, Line 17 | Georgia taxable income | |
| 176 | | Form 500, Line 18 | Georgia income tax (taxable income × 5.19%) | |
| 177 | | Form 500-ES | Quarterly estimated payments | |
| 178 | |
| 179 | --- |
| 180 | |
| 181 | ## Section 9: Refusal catalogue |
| 182 | |
| 183 | | Refusal ID | Topic | Reason | |
| 184 | |---|---|---| |
| 185 | | R-GA-01 | Corporate income tax | Not individual income tax | |
| 186 | | R-GA-02 | Net worth tax | Separate corporate obligation | |
| 187 | | R-GA-03 | Part-year / nonresident allocation | Complex allocation rules | |
| 188 | | R-GA-04 | Multi-state business apportionment | Requires detailed analysis | |
| 189 | | R-GA-05 | Partnership/S-corp pass-through | Different forms and rules | |
| 190 | | R-GA-06 | Withholding tax obligations | Employer-level | |
| 191 | | R-GA-07 | Hurricane Helene disaster relief | Special provisions; verify applicability | |
| 192 | |
| 193 | --- |
| 194 | |
| 195 | ## Disclaimer |
| 196 | This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon. |
| 197 | |
| 198 | The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). |
| 199 |
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Quality
Q3: AI-drafted
AI-generated with structure and citations. Not independently verified.
Needs deep research against tax authority websites to reach Q2.
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About
Georgia Individual Income Tax Return (Form 500) for sole proprietors and single-member LLCs. Covers the flat 5.19% rate (tax year 2025), Georgia taxable income computation from federal AGI, standard deduction, dependent exemption, and estimated tax. Trigger: taxpayer is a Georgia resident or has Georgia-source income.
US-GAty-2025
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