ATLANTA — Governor Brian Kemp signed a bill Wednesday that will return part of a record budget surplus back to Georgia taxpayers.
House Bill 1302 will provide a $250 refund to single filers, $375 to single adults who head a household with dependents, and $500 to married couples filing jointly. The refund will only be paid to people who filed tax returns for tax years 2020 and 2021.
In brief remarks as he signed the bill, Kemp saluted lawmakers for agreeing to “this big relief we’re putting together for hard-working Georgians to pay back over a billion dollars of their hard-earned money that, honestly, We didn’t need this.” year.”
The income tax refunds had originally been estimated to cost $1.6 billion, but that amount was revised to $1.1 billion in a March 9 estimate.
Here’s everything you need to know about the refund:
What is the HB 1302 tax refund?
HB 1302 allows Georgia taxpayers a refund of some or all of the income taxes due in 2020. The Georgia General Assembly recently passed, and Governor Kemp signed, legislation allowing an additional refund of income taxes due in 2020. rent starting in 2020 because the state has experienced a revenue surplus.
How do I know how much I can receive from this rebate?
Review your 2020 income tax return. If you filed a Form 500, the amount will be based on your tax liability shown on line 16. If you filed using Form 500EZ, the amount will be based on your tax liability indicated on line 4. The tax liability is the amount of tax due on the return before credit for any withholding, tax credit or other tax payments. Remember, you will not receive more than the maximums listed below.
What is the maximum I can receive for this refund?
It depends on your marital status. Single taxpayers and married individuals filing separately may receive a maximum refund of $250. Head of household taxpayers could receive a maximum refund of $375. Married individuals filing jointly may receive a maximum refund of $500.
Example: A single taxpayer filed a 2020 income tax return on time with a $300 tax liability. The taxpayer filed a 2021 tax return on time and would be eligible to receive a 2020 tax refund in the amount of $250. HB 1302 only allows a maximum refund of $250 for single filers.
What if my tax liability was less than these amounts in 2020, do I still get the maximum amount?
No, if you owed less than the maximum amounts listed above, you will only receive a refund for the amount of your actual tax liability.
Example: A single taxpayer filed a 2020 income tax return on time with a $200 tax liability. The taxpayer filed a 2021 tax return on time and is eligible to receive a 2020 tax refund in the amount of $200. Although the maximum allowable refund is $250 for individual filers, the taxpayer cannot receive a refund greater than the actual tax liability of $200.
What do I have to do to qualify?
You must have filed your 2020 return and your 2021 return by the due date for filing your 2021 return (including any extension granted by the Department of Revenue).
Who is eligible for the tax refund?
Any Georgian who was a full-year resident in 2020 and 2021 and who also filed a Georgia individual income tax return for 2020 and 2021 is eligible for the refund. Part-of-the-year taxpayers who file individual tax returns for both years (2020 and 2021) will be eligible for a prorated refund equal to the maximum amounts based on filing status multiplied by their Georgia portion of taxable income.
When will I receive this refund?
House Bill 1302 was signed into law by Governor Kemp on March 23, 2022, so some taxpayers may have already filed their 2021 returns. The Department of Revenue will attempt to include the HB 1302 refund alongside with other refund amounts due. For taxpayers whose 2021 returns have already been processed, the Department of Revenue will issue a separate refund.
I have already filed my 2021 return and received my 2021 refund. What do I need to do to claim the HB 1302 refund?
Nothing. The Department of Revenue will automatically update your account and send the refund to your designated bank account or by check if you did not receive your most recent refund by direct deposit to a designated bank account.
I was a dependent during tax year 2020 but filed a 2021 return. Do I get an HB 1302 refund?
No, even though you filed a 2021 return, HB 1302 does not allow people who relied on someone else’s 2020 return to receive a refund for these amounts.
Do part-year residents and taxable nonresidents qualify?
Yes, but refunds will be prorated in the same way that tax liabilities of such taxpayers are prorated.
I filed my return using an ITIN number instead of a Social Security Number. Do I qualify to receive this rebate?
Maybe. Taxpayers who used an ITIN number on their 2020 return will receive a letter from the Department requesting additional information to determine if they qualify. This letter will be sent to singles, heads of households, and married filing jointly if the return is filed with an ITIN, including married filing jointly where only one person on the joint return uses a number. ITIN.
What could reduce the amount of a refund?
Under HB 1302, any refund due would be subject to first offsetting against existing obligations owed to the state. Any remaining amount will be refunded to the taxpayer. However, a refund may also be subject to offsetting of debt collection or payments due to the state, such as child support arrears.
Information for this article from the Georgia Department of Revenue. Associated Press contributed to this article.
©2022 Cox Media Group