The Method for Calculating State Income Tax in Georgia
If you live in Georgia and are required to file a federal income tax return, you must also file a Georgia state income tax return. The Georgia tax return is due on the same day as your federal income tax return, so you should complete your federal income tax return early enough to give you time to finish your state return as well. Calculating your Georgia income tax is a far simpler process than figuring your federal tax; you start by using the adjusted gross income figure already recorded on your IRS Form 1040.
Other People Are Reading
Instructions
-
-
1
Identify your adjusted gross income as it appears on your federal income tax return (Form 1040). Record this amount on line 8 of your Georgia Form 500.
-
2
Add and subtract any adjustments to your income that apply to Georgia, but not to your federal return. You also need to fill out Georgia Schedule 1 and attach it if you are claiming adjustments. The most common adjustment is the retirement income exclusion, which allows anyone age 62 or older to exclude up to $35,000 of retirement income from the tax return.
-
-
3
Subtract a standard deduction of $3,000 if married filing jointly, $1,500 if married filing separately or $2,300 if single. If you are blind or 65 years or older, you can deduct another $1,300. If you itemized deductions on your federal tax return, use the amount of itemized deductions you claimed rather than your standard deduction.
-
4
Subtract allowances for exemptions. These are $2,700 apiece for yourself and your spouse and $3,000 for each dependent. The result is your Georgia taxable income.
-
5
Multiply your first $750 of taxable income by 0.01, the next $1,500 by 0.02, the next $1,500 by 0.03, the next $1,500 by 0.04 and the next $1,750 by 0.05. Multiply any taxable income above that by $7,000 and add all the results together to calculate your state income tax. If you are the head of household or married filing jointly, multiply the first $1,000 of taxable income by 0.01, the next $2,000 by 0.02, the next $2,000 by 0.03, the next $2,000 by 0.04 and the next $3,000 by 0.05. Multiply any taxable income above $10,000 by 0.06. If you are married filing separately, use half of the married-filing-jointly thresholds.
-
1
Tips & Warnings
Look up the status of your Georgia state income tax refund on the Department of Revenue website. You will need to enter your social security number and the expected amount of your refund.
