Surplus Tax Refund

• Taxpayers who took the standard deduction on their federal tax forms will not have their refunds subject to federal taxation.

• Taxpayers who took the itemized deduction but did not receive a tax benefit will not have their refunds subject to federal taxation.

• Taxpayers who took the state and local tax deduction (SALT) on their federal return and received more than the refund they would have otherwise with the standard deduction will have their refunds subject to federal taxation. If you itemized your 2021 deductions, include the special refund, in your gross income to the extent you received a federal tax benefit from the 2021 deduction. The federal tax benefit received, if any, depends on your specific tax situation. Use the federal Instructions for Schedule 1 or consult your tax advisor to determine the amount you should include in your federal taxable income.

Read the IRS Statement on federal taxability.

No. You will not pay any Georgia tax on the special refund because HB 1302 prohibits it. If state income tax refunds, including the special refund, are included in your federal taxable income, subtract them on line 12 adjustment on the schedule 1 on form 500.

H.B. 1302 allowed Georgia taxpayers a refund of some or all of the tax year 2020 income taxes due. In 2022, the Georgia General Assembly recently passed and Governor Kemp signed legislation allowing for an additional refund of income taxes from tax year 2020 because the state of Georgia experienced a revenue surplus. 

House Bill 1302 was signed into law by Governor Kemp on March 23, 2022, when some taxpayers had already filed their 2021 returns.  The Department of Revenue distributed over 90% of refunds due by July 2022. 

Note: H.B. 1302 refunds 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. 

Over 75% of taxpayers received their refund as direct deposit. However, some may have received the refund as a paper check. Surplus refunds were issued based on the regular refund instructions provided on a taxpayer's return. All surplus refunds went to taxpayers and not to tax preparers.

It depends on your filing status. Single filers and married individuals who file separately received a maximum refund of $250.  Head of Household filers received a maximum refund of $375.  Married individuals who file joint returns received 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 allowed a maximum refund of $250 for Single filers. 

Please refer to your 2020 income tax return. If you filed a Form 500, the amount was based on your tax liability listed on line 16. If you filed using Form 500EZ, the amount was 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.

No, if you owed less than the maximum amounts listed above, you only received 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.

You needed 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 had until October 17, 2022, to file your 2021 return.  

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. 

Nothing. The Department of Revenue automatically updated your account and sent 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.

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.

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.

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.

Maybe. Taxpayers who utilized an ITIN number on their 2020 return received a letter from the Department requesting additional information to determine if they qualified.  This letter was 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.

Under H.B. 1302, any refund due was 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.

Here are the most common reasons:

• You did not file both a 2020 and 2021 Georgia income tax return in calendar years 2021 and 2022 respectively.
• 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.