Georgia allows a credit for taxes paid to another state on income taxable to both Georgia and the other state. If the other state has not taxed the same income, a credit cannot be taken on the return. The program will automatically calculate this credit for your Resident Georgia return if you have a Non-Resident return created in your account for the other state.
If you are completing a Part-year Resident return for the other state, the allowable credit will need to be figured manually. The adjusted gross income for the other state must be manually entered. You can get this number from the PDF of the other state return. You will also be asked for the tax on the other state return. Again, this can be found on the other state return. Do not enter the amounts form your W-2 as these may not be the correct amounts. You can view the PDF to get the numbers required by going to the Summary/Print screen and clicking on View/Print PDF.
Residents and Part-year residents who claim a credit for taxes paid to another state for income earned while a resident must include a copy of the tax return filed for the other state with a copy of their Georgia return. If the other state return is not included, the credit may be disallowed. This credit is not allowed for income taxes paid to foreign countries. The credit for taxes paid to another state is a nonrefundable credit against your tax liability.
If you need to manually enter this credit within your account, follow the steps below:
- State Section
- Credit for Taxes Paid to Another State