Hello,
- I am single and retired and have made 2025 estimated tax payments to Georgia for about $20K which I estimated my total tax liability for 2025. Based on this, I plan to itemize my federal and state since my itemized deduction should be larger than standard deduction.
- My understanding is, Georgia offers film credit. The broker I've spoken to offers 8 cents for every dollar towards film credit, so offers 8% back.
- If I make purchase $20k of GA film credit, my understanding is, after I file my taxes GA will send me a refund of $20k since I have already made total tax liability $20k of estimated payments.
Questions:
- When I make the $20k film credit payment to GA, I would had paid a total of $40k. Do I take a total of $40k deduction on Federal or do I not need to declare or submit any forms to Federal?
- Will the refund of $20k from GA come as a 1099-G ? If that is the case, I will need to pay federal taxes on that in 2026. If that is the case, I would have to get that deduction on Federal on my 2025 taxes since I do not want to be taxed twice by Federal, once in 2025 and again in 2026.
- What do I need to treat the above in my filling of 2025 Federal taxes.
Please help!
