What is the HB 1302 Tax Refund?
H.B. 1302 allows Georgia taxpayers a refund of some or all of the 2020 income taxes due. The Georgia General Assembly recently passed, and Governor Kemp signed, legislation allowing for an additional refund of income taxes from 2020 because the state has experienced a revenue surplus.
When will I receive this refund?
House Bill 1302 was signed into law by Governor Kemp on March 23, 2022, so some taxpayers may have already filed their 2021 returns. The Department of Revenue will attempt to include the H.B. 1302 refund along with other refund amounts due. For taxpayers whose 2021 returns have already been processed, the Department of Revenue will issue a separate refund beginning in May 2022.
Note: The Department anticipates issuing substantially all the refunds by early August for returns filed by April 18, 2022. Due to the volume of refunds, it may take some time for all refunds to be processed, and your H.B. 1302 refund will not be issued until your 2021 tax return has been processed, which may delay your H.B. 1302 refund. If your address has changed since you filed your 2021 return, you may update your address through the Georgia Tax Center (https://gtc.dor.ga.gov/) or by calling the Department at 1-877-423-6711.
How will I receive my H.B. 1302 refund?
Generally, you will receive the refund in the form of a paper check mailed to the address you used on your 2021 return. If, however, you paid your 2021 tax liability by ACH credit, or you provided your banking information for a 2021 refund, you will receive your H.B. 1302 refund as a direct deposit. All H.B. 1302 refunds will be sent directly to the taxpayers and not to tax preparers.
What is the maximum I can receive for this refund?
It depends on your filing status. Single filers and married individuals who file separately could receive a maximum refund of $250. Head of Household filers could receive a maximum refund of $375. Married individuals who file joint returns could receive a maximum refund of $500.
Example: A Single taxpayer filed a 2020 income tax return and owed $300. The taxpayer filed a timely 2021 return and would be eligible to receive a refund of 2020 taxes in the amount of $250. Although the taxpayer paid $300 in 2020 taxes, H.B. 1302 only allows a maximum refund of $250 for Single filers.
How do I determine what I might receive from this refund?
Please refer to your 2020 income tax return. If you filed a Form 500, the amount will be based on your tax liability listed on line 16. If you filed using Form 500EZ, the amount will be based on your tax liability listed on line 4. Tax liability is the amount of tax owed on the return before credit for any withholding, tax credits or other tax payments. Remember, you will not receive more than the maximums listed above.
What if my tax liability was less than these amounts in 2020, do I still get the maximum amount?
No, if you owed less than the maximum amounts listed above, you will only receive a refund for the amount of your actual tax liability.
Example: A Single taxpayer filed a 2020 income tax return with a tax liability of $200. The taxpayer filed a timely 2021 return and is eligible to receive a refund of 2020 taxes in the amount of $200. Although the maximum allowable refund is $250 for taxpayers who file Single, the taxpayer cannot receive a refund of more than the actual tax liability of $200.
What do I need to do to qualify?
You need to have filed both your 2020 return and your 2021 return by the deadline for filing the 2021 return (including any extension granted by the Department of Revenue). Note: if an extension was filed for tax year 2021, you have until October 17, 2022, to file your 2021 return.
Who is eligible for the H.B. 1302 tax refund?
Any Georgian who was a full-year resident in 2020 and 2021 and who also filed a Georgia individual income tax return for 2020 and 2021 is eligible for the refund. Part-year and nonresident filers who file Georgia individual tax returns for both years (2020 and 2021) will be eligible for a proportional refund equal to the maximum amounts based on filing status multiplied by the share of their income taxable in Georgia.
I already filed my 2021 return and received my 2021 refund. What do I need to do to claim the H.B. 1302 Refund?
Nothing. The Department of Revenue will automatically update your account and will send the refund to your designated bank account or by check if you did not receive your most recent refund by direct deposit to a designated bank account.
I was a dependent during the 2020 tax year but filed a 2021 return. Do I receive an H.B. 1302 refund?
No, even though you filed a 2021 return, H.B. 1302 does not allow individuals who were dependents on another individual’s return in 2020 to receive a refund for these amounts.
Do part-year residents and taxable nonresidents qualify?
Yes, but the refunds will be prorated in the same manner as tax liabilities are prorated for such taxpayers. For such taxpayers, the proration ratio can be found on the 2020 tax year Georgia Form 500, Schedule 3, Line 9.
What if I had a different filing status for tax year 2021 than I did for 2020?
The refund is based on the taxpayer’s 2020 tax return filing status. For example, if your filing status was Single in 2020 and Head of Household in 2021, you would receive a maximum refund of $250, not a maximum refund of $375 that is allowed for Head of Household filers.
I filed my return using an ITIN number rather than a Social Security Number. Do I qualify to receive this refund?
Maybe. Taxpayers who utilized an ITIN number on their 2020 return will receive a letter from the Department requesting additional information to determine if they qualify. This letter will be sent to Single, Heads of Household, and Married Filing Joint if the return is filed under an ITIN, including Married Filing Joint where only one individual of the joint return uses an ITIN number.
What might reduce the amount of a refund?
Under H.B. 1302, any refund due would be subject to offset first against existing liabilities owed to the state. Any remaining amount will be refunded to the taxpayer. However, a refund may also be subject to set off debt collection or payments owed to the state such as delinquent child support payments.
What are some reasons I might not have received an H.B. 1302 refund?
Here are the most common reasons:
- You did not file both a 2020 and 2021 Georgia income tax return.
- You filed using an ITIN on your 2020 or 2021 return.
- Your tax amount due for tax year 2020 was zero.
- You are a part-year or nonresident taxpayer and your proration ratio resulted in a refund amount of less than $1.00.
- You were claimed as a dependent on another taxpayer’s income tax return for tax year 2020.