Credits - FAQ
Can a part-year resident qualify for the low income credit?
Yes, if they are living in Georgia at the end of the year and they meet the other requirements, a full credit will be allowed.
Does Georgia have an earned income credit?
What are the current criteria for qualifying with the Department of Revenue for the Georgia Low Income Housing Credit?
In order to qualify for the Georgia low income housing credit, the qualified Georgia project must be eligible for the federal housing credit, as defined in Section 42 of the IRC of 1986.
What should be included with the tax return when claiming the Georgia Low Income Housing Credit?
For consistency with IRS Regulations, a partnership K-1(if claiming the credit as a flow through from a partnership), the associated Federal Form 8609 tax credit certificate and a schedule that includes each property for which a credit is claimed with a building-by-building allocation should be submitted with the tax return. See Form IT-HC.
How does a taxpayer request preapproval for an income tax credit?
The taxpayer must set up an income tax account (corporate, individual, partnership, etc.) in the Department of Revenue’s Georgia Tax Center (GTC) https://gtc.dor.ga.gov/_/ if they do not already have one. If the taxpayer does not have an income tax account on DOR’s Georgia Tax Center, then the taxpayer should call 1-877-423-6711 to register as this cannot be done in GTC by the taxpayer.
Then the taxpayer must use the self-service portal in the Department of Revenue’s Georgia Tax Center (GTC) to access and submit the appropriate electronic form to request preapproval. After they log into their income tax account, they must be inside their income tax account (go to the bottom of the screen and click on the account number); then select “manage my credits”; then select “request preapproval”; and then from the drop-down list select the applicable electronic form.
If the taxpayer needs assistance when requesting preapproval, they should call 1-877-423-6711.
How does a taxpayer submit the electronic Form IT-WH to elect to use an income tax credit against withholding (an income tax credit’s statute and DOR regulation state whether that income tax credit can be used against withholding)?
In order to access the electronic Form IT-WH the taxpayer must have an income tax account on the Georgia Tax Center. The taxpayer must set up an income tax account (corporate or partnership) in the Department of Revenue’s Georgia Tax Center (GTC) if they do not already have one. The taxpayer should call 1-877-423-6711 to register as this cannot be done in GTC by the taxpayer.
After they set up a corporate or partnership income tax account; or if they already have one, the taxpayer would go inside their income tax account (go to the bottom of the screen and click on the account number) and select “manage my credits”; and then select “claim withholding”.
What is the time-frame for submitting the Form IT-WH to elect to use the credit against withholding? And when can the taxpayer begin to use the credit against withholding?
For taxable years beginning on or after January 1, 2017 a taxpayer must file the electronic Form IT-WH Notice of Intent through the Georgia Tax Center within thirty (30) days after the due date of the Georgia income tax return (including extensions) or within thirty (30) days after the filing of a timely filed Georgia income tax return, whichever occurs first. Please note that this time-frame is based on the due date of the original Georgia income tax return (not an amended Georgia income tax return).
The election to use an income tax credit against withholding is an irrevocable election.
If the taxpayer is approved to use the credit against withholding, the taxpayer will receive a withholding approval letter from the Department, the withholding approval letter will state the specific amount that can be used against withholding and when and how the credit is used against withholding.
Please note that the taxpayer cannot begin to use the credit against withholding before they receive the withholding approval letter from the Department, and the Department of Revenue treats this amount as a credit against future withholding tax payments and will not refund any previous withholding payments.
Can a taxpayer amend a prior year’s income tax return and claim an income tax credit (the taxpayer earned an income tax credit in the prior year but did not claim the credit on the prior year’s applicable Georgia income tax return)?
Certain income tax credits must be claimed by the taxpayer within the one year rule (the jobs tax credit, retraining tax credit, and quality jobs tax credit at the time of the posting of this information). The jobs tax credit, retraining tax credit, and the quality jobs tax credit must be claimed on an original or amended Georgia income tax return within one year of the earlier of the date the original return was filed or the date such return was due as prescribed in subsection (a) of Code Section 48-7-56, including any approved extensions.
A taxpayer can amend to claim all other income tax credits (other than the jobs tax credit, retraining tax credit, and quality jobs tax credit) on a prior year’s return under the 3 year rule in O.C.G.A. § 48-2-35(c), which states:
(c) (1) (A) A claim for refund of a tax or fee erroneously or illegally assessed and collected may be made by the taxpayer at any time within three years after:
(i) The date of the payment of the tax or fee to the commissioner; or
(ii) In the case of income taxes, the later of the date of the payment of the tax or fee to the commissioner or the due date for filing the applicable income tax return, including any extensions which have been granted.
Is there an order in which a taxpayer with more than one income tax credit must use their income tax credits?
The taxpayer decides the order in which they use their Georgia income tax credits, unless the income tax credit statute specifies an order. The only Georgia income tax credit that specifies an order is the research tax credit. The research tax credit statute and DOR regulation state that the research tax credit taken in any one taxable year shall not exceed 50 percent of the business enterprise's remaining Georgia net income tax liability after all other credits have been applied.
Can income tax credits be assigned to an affiliated entity?
O.C.G.A. § 48-7-42 allows income tax credits to be assigned to an affiliated entity. Please note that assignments must be made on an original return (return filed before the due date including extensions), assignments cannot be made on an amended return filed after the due date including extensions. And income tax credit carry forward cannot be assigned.