Georgia has made the following changes to the tax laws for the 2024 tax year:
Income Tax Rate and Deduction Updates
Income Tax Rate: The new income tax rate is 5.39%.
Personal Exemptions: Personal exemptions have been repealed, except for the $4,000 dependent exemption.
Standard Deductions:
- Married Filing Jointly: Increased to $24,000.
- Single, Head of Household, and Married Filing Separately: Increased to $12,000.
Georgia Resident Itemizer Tax Credit
Eligibility: Full-year and part-year residents who itemize deductions.
Credit Amount: Up to $300 per taxpayer, not exceeding the tax liability.
Claim Process: Report this credit on Form 500, Line 19.
Retirement Income Exclusion Update
Taxpayers can now exclude up to $5,000 of earned income when claiming the retirement income exclusion.
Tax Credit Updates
Qualified Education Donation Credit (Code 140)
Increased Limits:
- Individuals and Head of Household: $2,500.
- Married Filing Jointly: $5,000.
- Married Filing Separately: $2,500.
Aggregate Cap: Increased to $15 million.
Expiration: December 31, 2029.
Rural Zone Credit (Code 142) - Now available through December 31, 2032.
Historic Rehabilitation Credits (Codes 152 and 153) - Now available through December 31, 2029.
New Tax Credit
Rural Health Care Professional Credit (Code 154)
Credit Amount: $5,000 per year for up to five years for rural health care professionals, including physicians and dentists.
Eligibility:
- Must begin or return to practice in a rural county after May 15, 2024.
- A “rural county” is defined as having a population of less than 50,000 (excluding military personnel and dependents).
- Not available to those already practicing in rural counties as of May 15, 2024, unless they have practiced outside a rural county for at least three years.