The Additions to Income section is used to report income and adjustments that Georgia requires you to add back to your Federal Adjusted Gross Income (AGI) when calculating your Georgia taxable income.
While most information is automatically transferred from your federal return, certain items must be reported separately because Georgia tax law treats them differently than federal tax law.
What Can Be Entered in the Additions to Income Section?
Adjustments to Interest and Dividends from Non-Georgia Municipal Bonds
Interest and dividends received from municipal bonds issued by states other than Georgia are generally taxable to Georgia, even though they may be exempt on the federal return.
The program automatically pulls much of this information from the federal return, but additional adjustments may be entered if necessary.
Lump-Sum Distributions (Federal Form 4972)
Enter qualifying lump-sum distributions received from employee benefit plans that were reported on Federal Form 4972.
These distributions may require special treatment when calculating Georgia taxable income.
Net Operating Loss Carryovers from Years Not Subject to Georgia Income Tax
Enter any Net Operating Loss (NOL) carryovers that originated during years when the taxpayer was not subject to Georgia income tax.
These amounts must be added back for Georgia purposes.
Adjustments Due to Federal Tax Changes
If a federal adjustment or amendment resulted in a change to your federal taxable income, an adjustment may be required on the Georgia return.
Enter any applicable amount related to federal tax changes.
Payments for More Than $600 to Unauthorized Employees
Georgia law requires certain payments made to employees who were not authorized to work in the United States to be added back to income.
This generally applies to payments exceeding the threshold established by Georgia law.
Taxable Portion of Withdrawals from a Path2College 529 Plan
If a withdrawal from a Georgia Path2College 529 Plan is not qualified for favorable tax treatment, the taxable portion may need to be added back to Georgia income.
This commonly applies to nonqualified distributions.
Credit-Related Additions
Georgia requires taxpayers to add back certain deductions that were previously claimed if the taxpayer also received a Georgia tax credit related to those expenses.
Qualified Education Expense Credit
Enter the deduction related to expenses that were used to claim the Georgia Qualified Education Expense Credit.
Land Conservation Credit
Enter the deduction related to property or expenses for which the Georgia Land Conservation Credit was claimed.
Qualified Rural Hospital Organization Expense Credit
Enter the deduction related to contributions used to claim the Rural Hospital Organization Credit.
Qualified Education Donation Credit
Enter the deduction related to contributions used to claim the Education Donation Credit.
Qualified Foster Care Donation Credit
Enter the deduction related to contributions used to claim the Foster Care Donation Credit.
Qualified Law Enforcement Donation Credit
Enter the deduction related to contributions used to claim the Law Enforcement Donation Credit.
House Bill 149 Addition
For owners of pass-through entities that elected to pay tax at the entity level, enter the taxpayer's allocable share of any loss that was apportioned and allocated at the entity level.
This adjustment ensures the income is properly reported under Georgia law.
Special Depreciation Adjustment
Enter any adjustment necessary for depreciation differences between federal and Georgia tax treatment.
Because depreciation rules can be complex, taxpayers should review supporting documentation carefully before making an entry.
Other Additions
Use Other Additions to report any other income or adjustment that Georgia law requires to be added to Federal AGI but that does not fit into one of the categories listed above.
When entering an Other Addition:
- Enter the amount.
- Provide a description of the adjustment.
- Keep supporting documentation with your tax records.
Program Entry
To access this section, navigate to:
Georgia → Additions to Income
Additional Notes
- Only enter amounts that Georgia specifically requires to be added back to income.
- Most taxpayers will not need to complete every field in this section.
- Entering duplicate amounts may cause income to be overstated.
- Always review federal and Georgia supporting documents before making adjustments.