GA state Form 500 incorrectly limiting SALT deduction to $10,000

[TipsTroop]

A recent patch to the Turbo Tax 2025 software (installed on 1 March) appears to have a bug related to the GA state Form 500 Itemized Deductions (Section 12).

The software correctly transferred my total Itemized Deductions from Federal Schedule A to line 12a on GA Form 500, which includes a SALT deduction of ~$26k. However, the software appears to incorrectly limit the SALT deduction to $10K and applies a state Adjustment of ~$16K to line 12b on GA Form 500.

Is there a way to override this incorrect limit to the SALT deduction on GA Form 500? If not, will another software patch be provided soon to correct this bug in the software?

[MelindaS1]

Georgia itemized deductions for state and local income taxes paid are still limited to the 10,000 cap, because Georgia does not automatically conform to the federal law, as a fixed-date conformity state. As of the current time, the instructions for personal income tax in Georgia still require the filer to limit their income tax deduction to a 10,000 max. All the states were recently patched to updated for conformity/nonconformity with the federal tax law update.

[TipsTroop]

I’m not sure where you received this information. My research indicates that the state of GA does conform to the federal SALT cap of $40k for Married Filing Jointly. 

The instruction booklet should my says to enter your Federal Itemized Deduction on Line 12a. Then on 12b it gives an example of what to do if income from another state is limited to a $10k SALT cap. 

Where does it say that the state of GA does not conform to the $40k SALT cap?

And more importantly, how can I override this entry in TT when filing the Form 500? Since 100% of my income was earned in GA, there should be zero credits entered in Line 12b. 

[BillM223]

Where is the evidence that Georgia uses the $40,000 SALT cap? Georgia used the $10,000 SALT cap in 2024, and I see no evidence that this has yet to be changed for 2025.

I believe that HB 1199 is the bill that is slowly (like most bills) making its way through the Legislature, whose Summary is

A BILL to be entitled an Act to amend Code Section 48-1-2 of the Official Code of Georgia Annotated, relating to definitions regarding revenue and taxation, so as to revise the definition of the terms "Internal Revenue Code" and "Internal Revenue Code of 1986" to incorporate certain provisions of the federal law into Georgia law; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.

That is, to decide how much to align the state’s tax code with recent federal changes, like the SALT limit.

This bill is currently "recommitted", that is, sent back to committee. Whatever it may say about the Georgia SALT limit, this bill has not yet passed.

Status

Spectrum: Partisan Bill (Republican 5)
Status: Engrossed on February 20 2026 - 50% progression
Action: 2026-03-04 - Senate Recommitted
Text: Latest bill text (Comm Sub) [PDF]

[mrlangton]

Does this mean any filings done before March 1 were filed correctly? I filed in February but I still received an email saying I need to make an ammendment.

[user17739259433]

Here is a screenshot of the official GA DOR instruction for Form 500 items 12a-c. It does not limit the SALT deduction unless the Federal deduction is limited to $10k. As that is not the case for 2025, then the GA deduction is also not limited. 

[oneserve000]

Exactly, thank you so much for posting the instructions above.  Where is the evidence that shows GA is limiting taxes to 10,000?  None of the tax booklet instructions say this anywhere.  I see no articles or news that shows they did not change with Federal.  in fact the instructions booklet for 12a - 12c, ask for the total federal itemized, then the taxes paid to other states removed to come up with the new total.  Nothing in the instructions saw use 10,000, unless the other state reaches the 10,000 max value.

[SobeGuy305]

I got a notice telling me I needed to amend my state return and ended up having to pay. Spoke to tax expert and they confirmed this cap and helped me with amending it. I filed Feb 16

[oneserve000]

I did as well and also amended. But that’s not the point. The point is there is no documentation in the instructions or booklet. The only place this is recorded is in GA state tax code. That should have been written in the booklet to match. That is the issue. 

[RogerD1]

On page 5 of the 2025 Georgia IT-511 Individual Income Tax Instructions:  "Georgia conforms to the Internal Revenue Code, as amended, provided for in federal law enacted on or before January 1, 2025. Georgia has not adopted the federal tax law changes in the federal One Big Beautiful Bill Act because the Act was signed on July 4, 2025. For more details on Georgia’s conformity to federal tax laws, please see https://dor.georgia.gov/taxes/tax-rules-and-policies/income-tax-federal-tax-changes."

Because of that, on the Georgia Itemized Deduction Smart Worksheet on page 1 of Georgia Form 500, line 4 is limited to $10,000 - even though the Federal amount changed for 2025 from $10,000 to $40,000 for the SALT deduction, the state of Georgia is not conforming yet to the One Big Beautiful Bill Act in that regard.  The calculation in that Smart worksheet is correct and the amount of the state tax exceeding the $10,000 is reported on line 12b as a downward adjustment to the Federal Itemized Deductions.

[SmyrnaTax]

I think your GA DOR link is bad.  You have an extraneous period at the end.  This link seems to work but I don't see any reference to tax year 2025.

Try this link:  https://dor.georgia.gov/taxes/tax-rules-and-policies/income-tax-federal-tax-changes

(I intentionally did not format it to be clickable to avoid issues)

Thanks!

[SmyrnaTax]

I think this is the page with the 2025 information:  https://dor.georgia.gov/taxes/important-tax-updates

About a page and a half down it says:

"One Big Beautiful Bill Act: Georgia has yet to adopt the federal tax law changes in the federal One Big Beautiful Bill Act because the Act was signed on July 4, 2025. Read more details on Georgia’s conformity to federal tax laws."

I hope this helps!

[user17715872872]

The Georgia Governor signed HB1199 earlier today.  As a result, I canceled my appointment with TurboTax to amend my 2025 return.

[user17715872872]

Fudge.  Looks like HB1199, despite its passage and signed into law, still didn’t “fix” the $10k SALT deduction limit in Georgia.

Very frustrating.

[DianeW777]

Georgia (GA) has not agreed to follow federal protocol with the state and local tax (SALT) deduction. It is still limited to $10,000.  Please use the link below to handle your GA return if you need to do an amendment. 

• How do I amend my 2025 tax return to correct the SALT limitation?

@user17715872872