WHAT’S NEW
Source: GA DOR – 2024 GA Individual Income Tax – page 9
2024 Income Tax Changes: Effective January 1, 2024, the income tax rate is 5.39%. Additionally, personal exemptions have been repealed except for the $4,000 dependent exemption. Finally, Georgia standard deductions have increased to $24,000 for Married filing jointly returns and $12,000 for Single, Head of household, and Married filing separately returns. The Department encourages taxpayers to review their estimated tax payments and wage withholdings for 2024.
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 cannot be greater than the tax liability and cannot be carried forward to future returns. This credit is claimed on Form 500, Line 19.
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. Previously, the subtraction was available only for qualified payments to minority businesses. See page 22 for more information.
Tax Credit Changes Qualified Education Donation Credit (Credit Code 140): The maximum qualified education donation credit amounts for an individual or head of household is increased to $2,500, for a married couple filing a joint return to $5,000 and for married couples filing separate returns to $2,500. The maximum credit for individuals who are members of an LLC, a shareholder of an S corporation, or partner in a partnership is the lesser of $25,000 or the amount donated. The aggregate amount of credits allowed is now $15 million, and the credit sunsets on December 31, 2029.
Rural Zone Credit (Credit Code 142) The Rural Zone Credit has been extended to December 31, 2032. The Historic Rehabilitation Credit for Historic Homes and for Other Certified Structures (Credit Codes 152 and 153) These credits have been extended to December 31, 2029.
New Definition of Rural County: For purposes of the Rural Physician Credit (IND-CR 207) and the Rural Health Care Professional Credit (Credit Code 154), a “rural county” is defined as a county with a population of less than 50,000 according to the United States decennial census of 2020 or any future such census; provided, however, that for counties which contain a military base or installation, the military personnel and their dependents living in such county shall be excluded from the total population of such county.
New Tax Credit: Rural Healthcare Professional Credit (Credit Code 154): A rural healthcare professional can claim a credit in the amount of $5,000 for each 12-month period of employment as a rural healthcare professional. The tax credit may be claimed each year for up to five years, provided that the rural health care professional continues to qualify as a rural health care professional. The credit cannot exceed the taxpayer’s income tax liability and cannot be carried forward or back. A “rural health care professional” includes both rural physicians and rural dentists. No rural healthcare professional who, on May 15, 2024, is currently practicing in a rural county is eligible to receive the credit. No credit shall be allowed for a rural health care professional who has previously practiced in a rural county, unless after May 15, 2024, that rural health care professional returns to practice in a rural county after having practiced in a county other than a rural county for at least three years. See Tax Credit Summaries for qualifications and more information: https://dor. georgia.gov/tax-credit-summaries.
Note: This credit is to be claimed on Schedule 2 of the Form 500.