Important Tax Updates

Important Dates

The Georgia Department of Revenue will begin processing 2024 individual income tax returns on Monday, February 3, 2025.

Individuals

  • The deadline to file 2024 individual income tax returns, without an extension, is May 1, 2025. 
  • Most refunds are issued within 3 weeks from the date a return is received by the Department. However, it may take up to 12 weeks to process
  • First-time filers and those who have not filed in five or more years will receive a paper refund check

Businesses

  • W-2 and 1099-MISC with non-employee compensation (NEC) income statements are due on or before January 31st of the following year.
  • All other 1099 income statements are due on or before February 28th of the following calendar year.

2024 Income Tax Changes

  • Effective January 1, 2024, the income tax rate is 5.39%
  • Personal exemptions have been repealed except for the $4,000 dependent exemption
  • Georgia standard deductions have increased to $24,000 for Married filing jointly returns and $12,000 for Single, Head of household, Married filing separately, and Qualifying surviving spouse returns
  • Georgia Resident Itemizer Tax Credit: Full-year and part-year residents who itemize their deductions shall be entitled to a credit up to the amount of $300 per taxpayer. 
    The credit is available to “any resident taxpayer.”
    • Resident is defined in 48-7-1 as anyone who is a legal resident of GA as of December 31. This credit is available to full year residents and to part year residents who are GA residents by the end of the year.
  • Retirement Income Exclusion Change: Taxpayers can now exclude up to $5,000 of earned income when they claim the retirement income exclusion
  • Exclusion of PTSD Benefits Received by First Responders: To the extent insurance benefit payments for occupational PTSD received by a first responder are included in the Federal AGI, it is exempt from Georgia taxation. However, insurance coverage for first responders’ occupational PTSD does not begin until January 1, 2025
  • Qualified Payments to Classified Subcontractors: Effective January 1, 2024, a corporation that is a party to state contracts may subtract from Federal taxable income 10% of qualified payments to classified subcontractors. A classified subcontractor is defined as a small business certified as a minority business enterprise, women-owned business, or veteran-owned business

Tax Credits Updates

  • Credit 154: Rural Healthcare Professional Credit - Definition of a rural county changed
  • Credit 152: Historic Rehabilitation Credit for Historic Homes - Extended through 2029
  • Credit 153: Historic Rehabilitation for Other Certified Structures – Extended through 2029
  • Credit 142: Rural Zone Credit - Extended through 2032
  • Credit 140: Qualified Education Donation Credit - Increase in maximum donation amounts; Extended through 2029
  • IND-CR 207: Rural Physicians Credit - Definition of a rural county changed

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