Georgia Form 500 Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are designed to collect the same data, they're all constructed differently. What follows is a breakdown of Form 500, the Georgia Individual Income Tax Return. If you don't live in Georgia, not to worry, we'll be tackling the other 34 states soon enough.
The Georgia Department of Revenue has constructed a strange looking form. At it's core, the Form 500 is only 37 Lines. Unfortunately it's 6 pages long! Why? Because it includes three schedules and the entire first page is for biographical data. Heck, most states fit this in a couple of lines. I have to give it a 4 on the user-friendly meter for this reason alone.
This is the first section of Schedule 3, to view and obtain the entire schedule download the PDF.
Begin on page 1 with your name, address, social security number, and filing status. Then record all your exemptions on Line 6 and all your dependents in box 7. Can you believe that took an entire page? Me neither.
On Line 7a enter the number of dependents that live with you. On Line 7b add the number of dependents and exemptions together. The form requests that if Lines 8, 9, 10, 13, or 15 are negative, you shade in the circle next to the number the line number. Considering that all these lines have to do with your income, let's hope this total isn't negative.
On Line 8 enter your Federal adjusted gross income, you can get this number from your Federal tax form. Be aware that if the amount on Line 8 is more than $40,000 or if your gross income is less than what is on you're W-2', Georgia requires you to include pages 1 and 2 of your federal form with this return.
On Line 9 enter any adjustments from Schedule 1 (a walkthrough of that is at the end). Then add Lines 8 and 9 to get your Georgia adjusted gross income which goes on Line 10. On Line 11 enter your standard deduction, just see page 11 of the tax booklet for guidance. Then if you checked any boxes below Line 11, multiply them by $1,300 and enter that total on Line 11b.
If you don't want to take the standard deduction you'll have to work through Line 12 to itemize. Start by jotting down your federal itemized deductions on Line 12a. Then check the tax booklet on page 12 to see if you need to make any adjustments to this number. Then subtract Line 12b from 12a to get your Georgia itemized deductions.
Next subtract the greater of Line 11c or Line 12c from Line 10 and put that total on Line 13. Remember if somehow, someway your total income is negative, then you'll have to shade in the circle.
On Line 14a multiply your number of exemptions by $2,700. Then on Line 14B multiply your number of dependents by $3,000. Then add Lines 14a and 14b and put the total on Line14c. Now subtract Line 13 from Line 14c to get your Georgia taxable income. Then go to page 19 of the booklet to look up your tax from the tax table. Enter that total on Line 16.
On Line 17 enter all your credits from Schedule 2. That's page 5 Line 11 if you're wondering and we haven't gotten there yet. Now subtract Line 17 from Line 16 with the total going on Line 18. Line 19 is slotted for your Georgia withholdings, just include Form IT-560 after you fill it in.
Don't ask me why Line 21 is for department use only because I have no idea, and it's 100% unique to this crazy form. Add Lines 19 through 20 and enter the sum of all these credits on Line 22. If Line 18 is more than Line 22 then you owe and you'll have to get your checkbook out. Bummer!
But if Line 22 is more than Line 18, you're due a refund. Oh happy day! If you want any portion of your refund to be applied to next year, enter the amount on Line 25. Just know there is no reason to prepay next year's taxes. Do you think Georgia would give you an interest free loan?
Once you work through all your charitable contributions, you're ready to finish up the form. If you've incurred an estimated tax penalty, include Form 500 UET and enter the total on Line 34.
If you don't remember if you owe, refer back to Line 23. Then add Lines 23, and 26 through 34 to get the final amount, which goes on Line 35. But if you are due a refund, subtract the sum of Lines 25 through 34 from Line 24 and put that glorious total on Line 36. If you elect to use Direct Deposit fill out lines 36a with your bank information.
All that's left is attach the appropriate blue or green label, (again don't ask me why), and sign the return. Like I said, this Georgia Form 500 is definitely a weird one, and due an overhaul. The Georgia department of revenue should do their taxpayers a favor and check the Illinois form for how to build an effective form.
Read on if you want help with Schedules 1, 2, or 3.
This is the first section of Schedule 1, to view and obtain the entire schedule download the PDF.
Moving onto page 4 we find Schedule 1, which is for any adjustments to income based on Georgia Law. Start this section by filling in any interest you received from municipal and state bonds from outside of Georgia. Then on Line 2 enter any lump sum distributions from any retirement vehicle you may own. On Line 3 record your federal deduction for any domestic production activities (IE farmland). On Line 4 include any other additions, before you add Lines 1 through 4 and put the total on Line 5.
On Line 6, check page 10 of the booklet to see if any of your retirement income is excluded from tax. On Line 7, record your social security benefits and on Line 8 any monies in a Georgia higher education savings plan. On Line 9 jot down any interest from United States bonds and on Line 10 any other adjustments. You'll have to state what they are, so don't think you can get away with making any of this stuff up.
Then enter the sum of Lines 6 through 10 on Line 11. Next subtract Line 5 from Line 11 to get your total adjustments. These adjustments go here (on Line 12) and on Line 9 of the main form.
This is the first section of Schedule 2, to view and obtain the entire schedule download the PDF.
On page 5 we're looking for credits. Start by entering any credits you've earned from other states. On Line 2 include credits from Form IND-CR. Line 3 is for low and zero emission vehicles, while Line 4 is for qualified education expenses. On Line 5 record any clean energy property credits that you've earned.
If you have any pass through credits fill out lines 6 though 10. Then enter the total of Lines 1 through 10 on Line 11 and Line 17 of the main form.
This is the first section of Schedule 3, to view and obtain the entire schedule download the PDF.
If you're a part time or nonresident you'll have to fill out a Schedule 3. Lines 1 through 8 attempt to distribute your income across different states. Line 9 is looking for the percentage of your adjusted gross income that's due to Georgia. Lines 11 through 14 allows for deductions, exemptions, and the amount of taxable income that needs to go to the department of revenue. This gets really sticky so I hope none of it applies to you.
