ga-income-tax

Georgia Individual Income Tax Skill — Self-Employed / Sole Proprietor

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. Quality tier. Q3 — AI-drafted with citations. Must be reviewed by a qualified professional before use.

Section 1: Metadata

Section 1 Metadata table

Field	Value
Jurisdiction	US-GA (Georgia)
Tax authority	Georgia Department of Revenue (GA DOR)
Filing portal	Georgia Tax Center (GTC)
Legislation citation	O.C.G.A. Title 48, Chapter 7 (Income Taxes)
Primary form	Form 500 (Individual Income Tax Return)
Filing deadline	April 15, 2026 (for tax year 2025)
Extension	Automatic with federal extension (attach Form 4868 or IRS confirmation); or use GA Form IT-303
Version	0.1
Generated date	May 22, 2026
Validation status	AI-drafted — Q3

Sources consulted

• Georgia DOR — 2025 IT-511 Individual Income Tax Booklet: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download
• Georgia DOR — Important Tax Updates: https://dor.georgia.gov/taxes/important-tax-updates
• O.C.G.A. § 48-7-20 (tax rate): as amended by HB 111 (signed April 2025)
• NerdWallet — Georgia State Income Tax: https://www.nerdwallet.com/taxes/learn/georgia-state-tax
• BlueWave HR — Georgia Flat Income Tax 2026: https://bluewavehr.com/blog/georgia-flat-income-tax-2026.html

Section 2: Quick reference — rates and thresholds

Tax year 2025 rate

Tax year 2025 rate table (O.C.G.A. § 48-7-20, as amended by HB 111 (2025). Rate reduced from 5.39% (2024) to 5.19% (2025).)

Rate	Applies to
5.19% (flat)	All Georgia taxable income

• 2026 rate change — 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). (O.C.G.A. § 48-7-20, as amended by HB 111 (2025))

Standard deduction (tax year 2025)

Standard deduction table

Filing status	Standard deduction
Single	$12,000
Married filing jointly	$24,000
Married filing separately	$12,000
Head of household	$12,000

Dependent exemption

Dependent exemption table

Item	Amount
Dependent exemption (per dependent)	$4,000
Personal exemption	None (eliminated after 12/31/2023)

Filing thresholds

• Filing requirement — You must file Georgia Form 500 if: You are required to file a federal income tax return, OR You have income subject to Georgia tax but not federal tax, OR Your gross income exceeds $24,000 (MFJ) or $12,000 (all other filers)

Section 3: How this skill works with the federal return

Starting point: Georgia begins with federal adjusted gross income (AGI) from federal Form 1040, Line 11.

Key additions to Georgia income (Schedule 3)

• Additions list — Interest on obligations of other states (not Georgia or federal); Bonus depreciation add-back (Georgia does NOT conform to federal §168(k) bonus depreciation); Other state-specific additions

Key subtractions from Georgia income (Schedule 3)

• Social Security exemption — Social Security benefits (Georgia fully exempts Social Security from state income tax)
• Retirement income exclusion — up to $35,000 per taxpayer age 62–64; up to $65,000 per taxpayer age 65+ (includes retirement plan distributions, interest, dividends, capital gains, rental income). Within the exclusion, earned income (wages, self-employment income) is capped at $4,000. USD (O.C.G.A. §48-7-27(a)(5))
• Georgia lottery winnings exemption — first $5,000 exempt USD
• Military retirement income exclusion — up to $35,000 for taxpayers under 62 USD

Net result

• Georgia income tax computation — Federal AGI ± Georgia modifications = Georgia adjusted gross income → minus standard deduction → minus dependent exemptions = Georgia taxable income → × 5.19% = Georgia income tax.

Section 4: Self-employed specific rules

QBI conformity

• QBI treatment — 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.

SE health insurance deduction

• SE health insurance — Already reflected in federal AGI. Flows through to Georgia automatically.

Retirement contributions (SEP, SIMPLE, solo 401(k))

• Retirement contributions — Already reflected in federal AGI. No Georgia add-back required.

Home office deduction

• Home office deduction — Already reflected in Schedule C → federal AGI. Flows through automatically.

Estimated tax (Form 500-ES)

• Estimated payment requirement — Self-employed individuals must make quarterly estimated payments if they expect to owe $1,000 or more after withholding and credits.
• Voucher due dates — April 15, June 15, September 15, January 15.
• Safe harbor — No penalty if payments equal at least 100% of prior year tax OR 90% of current year tax.

Bonus depreciation add-back

• Bonus depreciation treatment — 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.

Section 5: Tier 1 rules — deterministic

Tier 1 rules table

Rule ID	Rule
GA-IT-1.01	Georgia tax = Georgia taxable income × 5.19%
GA-IT-1.02	Georgia taxable income = GA AGI − standard deduction − (dependent exemptions × $4,000)
GA-IT-1.03	Social Security benefits are fully excluded
GA-IT-1.04	No local/city income taxes anywhere in Georgia
GA-IT-1.05	Form 500EZ discontinued — all filers use Form 500 (beginning tax year 2025)
GA-IT-1.06	Georgia allows credit for taxes paid to other states (to prevent double taxation)
GA-IT-1.07	Georgia does not have a state-level EITC
GA-IT-1.08	Filing deadline same as federal: April 15

Section 6: Tier 2 rules — requires judgment

Tier 2 rules table

Rule ID	Rule	Judgment needed
GA-IT-2.01	Bonus depreciation add-back/recovery	Multi-year tracking required; Georgia allows recovery over asset life
GA-IT-2.02	Part-year resident allocation	Prorate income for period of Georgia residency
GA-IT-2.03	Retirement income exclusion eligibility	Verify age, income type, and per-taxpayer limits
GA-IT-2.04	Credit for taxes paid to other states	Verify other state tax was actually paid on same income
GA-IT-2.05	2026 rate change	Monitor whether revenue targets are met for automatic rate reduction to 5.09%

Section 7: Supplier pattern library

Supplier pattern library table

Pattern on bank statement	Likely meaning
GA DEPT OF REVENUE	Georgia income tax payment
STATE OF GA TAX PMT	Georgia estimated tax payment
GEORGIA TAX REFUND	Georgia income tax refund
GA DOR GTC	Georgia Tax Center payment

Section 8: Form mapping

Form mapping table

Georgia Form	Federal equivalent / Input
Form 500, Line 8	Federal Form 1040, Line 11 (AGI)
Form 500, Schedule 3	Georgia additions and subtractions
Form 500, Line 14	Georgia adjusted gross income
Form 500, Line 15	Standard deduction
Form 500, Line 16	Dependent exemptions
Form 500, Line 17	Georgia taxable income
Form 500, Line 18	Georgia income tax (taxable income × 5.19%)
Form 500-ES	Quarterly estimated payments

Section 9: Refusal catalogue

Refusal catalogue table

Refusal ID	Topic	Reason
R-GA-01	Corporate income tax	Not individual income tax
R-GA-02	Net worth tax	Separate corporate obligation
R-GA-03	Part-year / nonresident allocation	Complex allocation rules
R-GA-04	Multi-state business apportionment	Requires detailed analysis
R-GA-05	Partnership/S-corp pass-through	Different forms and rules
R-GA-06	Withholding tax obligations	Employer-level
R-GA-07	Hurricane Helene disaster relief	Special provisions; verify applicability

Disclaimer

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.

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