Georgia Qualified Education Expense Credit Form IT-QEE-TP2

The Qualified Education Expense Credit (Form IT-QEE-TP2) allows eligible Georgia taxpayers to receive a tax credit for contributions made to an approved Student Scholarship Organization (SSO) operating under Chapter 2A of Title 20 of Georgia law.

⚠️ Important: Pre-approval is required before a contribution may qualify for the credit. Contributions made without pre-approval are not eligible for the credit.

Program Entry 🖥️

To access this credit, navigate to:

1. State Section
2. Edit Georgia Return
3. Credits
4. Non IND-CR Credits
5. Form IT-QEE-TP2 Qualified Education Expense Credit

How Does the Credit Work? 🎓

Taxpayers must first receive pre-approval from the Georgia Department of Revenue before making a contribution.

Once pre-approval is received:

• The contribution must be made within 60 days of the pre-approval notice.
• The contribution must be made to an approved Student Scholarship Organization (SSO).
• The taxpayer must retain the letter of confirmation received from the Student Scholarship Organization.

This documentation should be kept with the taxpayer's records and may be required to support the credit claim.

Credit Limits 💰

The allowable credit depends on filing status and the amount contributed.

Single or Head of Household

• Up to $2,500 per tax year, or
• The actual contribution amount, whichever is less.

Married Filing Jointly

• Up to $5,000 per tax year, or
• The actual contribution amount, whichever is less.

Married Filing Separately

• Up to $2,500 per tax year, or
• The actual contribution amount, whichever is less.

Credit Carryforward 🔄

For individual taxpayers, the credit cannot exceed the taxpayer's Georgia income tax liability for the year.

Any unused credit may be carried forward for up to five years, subject to Georgia's carryforward rules.

Impact on Federal Charitable Contributions 📋

If a taxpayer claims the Qualified Education Expense Credit, the portion of the federal charitable contribution used to generate the Georgia credit must be added back to Georgia taxable income.

This adjustment prevents the taxpayer from receiving both:

• A Georgia tax credit, and
• A Georgia tax benefit from the same charitable contribution deduction.

Documentation Requirements 📄

Taxpayers claiming the credit should retain:

• The Georgia Department of Revenue pre-approval notice.
• The contribution confirmation letter received from the Student Scholarship Organization.
• Records showing the amount and date of the contribution.

Important Notes ⚠️

• Pre-approval is required before making a qualifying contribution.
• Contributions must be made within 60 days of receiving the pre-approval notice.
• The credit is limited by filing status and contribution amount.
• Unused credit may be carried forward for up to five years.
• The federal charitable deduction related to the contribution must be added back to Georgia income if the credit is claimed.