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CCH Axcess Tax

Georgia General Information

The following Georgia tax forms and schedules are prepared:

Federal Forms for Georgia Returns

Federal Form 1040, page 1 and 2 and Schedule 1 will be attached to all Georgia returns with state AGI greater than $40,000, or when adjusted gross income is less than W-2 wages.

State Extension

Either a federal extension or a Georgia state extension may be filed with the Georgia return.

To force the preparation of a Georgia extension, enter information on the Extensions > Automatic Extension section. Nonresidents must enter "GA" in the State Code field of the Extensions > Automatic Extension section to produce a Georgia extension.

To force the federal 4868 to attach to the Georgia return, select the "Federal Form 4868 for state indicated in State code" field of the Extensions > Automatic Extension section.

FS and State Codes

Filing Status Optimization

Two separate tax return files can be produced from one original set of interview forms or entries. The basis for segregating the return information is the existing TS or TSJ code boxes, the FSO fields, and any other taxpayer/spouse designations on the federal, state or city interview forms.

Processing options related to the Filing Status Optimization are available on federal Return Options. This feature is only available to in-office users and can be requested using the menu selection "Options"/"Split Joint Return" on joint returns only. Once the option is selected, two additional separate returns will be created that must then be accessed individually for further processing such as additional entries, corrections, calculation, review and printing.

The Filing Status Comparison, which can be requested on federal Return Options, can be used in advance to approximate the tax effect of filing separate returns and accordingly can be used as a basis for deciding which joint returns to split.

State Taxable Income Basis

The computation of Georgia taxable income begins with federal adjusted gross income. For Georgia part-year and nonresident returns, the ratio of Georgia adjusted gross income to federal adjusted gross income is calculated. Total deductions and exemptions are then allocated for Georgia purposes based on the calculated percentage.

Low Income Credit

To claim a natural or legally adopted child as an exemption for the Low Income Credit, enter an "X" on federal General > Dependents section > State use field. The name of each dependent designated with an "X" carries to the Low Income Credit worksheet which prints on a separate statement and will attach to the return.

Georgia Deviations

The following are differences between the Georgia income tax return and the federal income tax return and require no additional entries unless otherwise noted.

Dependent's Unearned Income

The dependent's unearned income included in parent's federal adjusted gross income is subtracted out for Georgia income purposes.

Additional Deductions

Georgia allows an additional deduction if the taxpayer and/or spouse is age 65 or older or blind. This deduction is allowed only if the standard deduction is used.

Tax Exempt Interest

Enter tax exempt interest, such as municipal bond interest received from Georgia or its political subdivisions, in the "State Nontaxable" fields on federal Income > Interest (1099-INT) > Interest (IRS 1099-INT) section or Dividends (1099-DIV) >section. Amounts entered in these "State Nontaxable" fields are excluded from the Georgia return.

Enter tax exempt interest that is taxable to Georgia in the "State Taxable" fields on federal Income > Interest > or Dividends section.

If tax exempt interest reported on 1099-DIV includes both amounts from Georgia and amounts from other states, enter the "Dividend Income - Source", the amount from Georgia in the "State Nontaxable" field and the remaining amount in the "State Taxable" field.

Enter tax exempt interest received from a passthrough entity in the Interest and Dividends section of federal Sch E, p 2 - Partnership Passthrough > Interest and Dividends section. For tax exempt interest received from Georgia or its political subdivisions use type code "9" or "16". Amounts entered in conjunction with type code "9" or "16" are excluded from the Georgia return. For tax exempt interest taxable to Georgia, use type code "10" or "17".

U.S. Bond Interest

U.S. bond interest entered on federal Income > Interest section or Dividends > or Sch E, p 2 - Partnership Passthrough > Interest and Dividends section is included on the Georgia return as a subtraction from federal adjusted gross income.

Depreciation

Qualifying bonus assets automatically calculate the federal bonus depreciation in accordance with the bonus depreciation, as well as the corresponding adjustment for the state disallowed portion of the bonus depreciation. Specific assets may be excluded from the bonus calculation entirely by making an entry on federal Depreciation and Amortization worksheet. All state bonus depreciation can be suppressed by making an entry on Federal Depreciation and Depletion Options and Overrides > Depreciation Options > Suppress all state bonus depreciation adjustments.

Georgia allows federal ACRS depreciation for property placed in service in tax years ending after March 11, 1987. For these assets, state depreciation is calculated from depreciation entries on federal Depreciation and Amortization worksheet.

If the property was placed in service between December 31, 1980, and March 11, 1987, the election not to conform to the federal method has been made, and "GA" is the Home State Code entered on federal Basic Data > General > there are two options:

1. Depreciation and Amortization worksheet may be used to calculate Georgia depreciation on ACRS assets and will carry to the additions or subtractions section of Form 500, Schedule 1.
2. An adjustment may be made in the additions or subtractions section of Georgia Income/Deductions > Additions section or Subtractions section and will carry to Form 500, Schedule 1.

If "GA" is not the Home State Code entered on federal Basic Data > General > the second option must be used.

State Taxes Paid

State taxes paid to Georgia are deductible on the Georgia return. State taxes paid to other states and deducted on the federal return are an adjustment to Georgia itemized deductions on Form 500. To make this adjustment, enter an override for Georgia state taxes on federal Itemized deductions worksheet with an "S" in the FS box and "GA" in the State Code field.

Lump-Sum Distributions

The ordinary income element and capital gain element of lump-sum distributions are additions to federal adjusted gross income.

Social Security Benefits and Railroad Retirement

The taxable portion of social security benefits and railroad retirement is a subtraction from federal adjusted gross income.

Lines 9 through 14 Omitted on Form GA500

On non-resident and part-year resident returns, these lines are intentionally left blank. Non-residents and part-year returns use Schedule 3 to figure Georgia taxable income.

Sources of Earned Income are Included in the Retirement Exclusion

Earned income includes wages, business income, partnership income, farm income, S-Corporation income and other miscellaneous self-employment income. Up to $35,000 per taxpayer of pension income in tax year 2021 can be excluded with a maximum amount of $4,000 of earned income per taxpayer.

Form 500-NOL, Computation of Net Operating Loss

This form is only produced to carryforward an NOL. Page 2, carryback section, is not calculated. Page 4 is not calculated.

Refund Processing

To assist taxpayers and tax professionals expecting refunds, the GADOR is providing the following URL about refund processing:

https://dor.georgia.gov/wheres-my-refund

The Department is protecting Georgia taxpayers from tax fraud. It may take more than 90 business days from the date of receipt by DOR to process a return and issue a refund.

Taxes Due

To assist taxpayers and tax professionals with balance due returns, the GADOR is providing the following URL and statement regarding taxes due:

https://dor.georgia.gov/georgia-electronic-filing-information

If you file electronically and need to make a payment, you have the following options:

• Pay by ACH debit using Georgia Tax Center (GTC). You do not need to be registered to use the GTC Quick Payment Option. https://gtc.dor.ga.gov/_/
• Pay by ACH debit using the approved software function.
• Pay with a credit card.
• Mail your check payment with the payment voucher to the address on the voucher. You can print this form from your software program or obtain it from GADOR's website.

Mailed paper returns with payment should be mailed to the address on the form along with the payment voucher and check.

State Driver's License(DL)/State ID Card Expectations

To help taxpayers, tax professionals and industry partners understand the jurisdiction requirements for State driver's licenses or State ID cards, GADOR is providing the following expectations:

For e-file returns: GADOR wants to receive the DL/ID Card information with the tax return.

For printed/paper forms requesting the DL/ID Card Information: GADOR requests the DL/ID Card information on the form(s) be provided, if available.

Form 500UET penalty

If there is an underpayment of estimated tax for Individuals, Fiduciaries, and Corporations it may result in a UET penalty that will decrease a refund or generate a balance due.

1099-Gs

Effective beginning with the TY 2019 filing season, Georgia will no longer mail 1099-Gs to taxpayers. However, you can request an electronic 1099-G through the Georgia Tax Cente (GTC) at https://gtc.dor.ga.gov/_/#1