Geogia Estimated Tax Calculation

[temay]

I am using 2023 TurboTax Deluxe.  It’s calculations of 2024 Georgia estimated taxes are still not correct after two software updates.

TurboTax corrected the income tax rate to 5.49%.

TurboTax did not correct the changes in personal exemptions and standard deductions.

From the Georgia 2023 IT-511Individual Income Tax Booklet, Page 7, “2024 Income Tax Changes: … Additionally, personal exemptions have been repealed except for the $3,000 dependent exemption. Finally, Georgia standard deductions have increased to $24,000 for Married Filing Joint returns and $12,000 for Single, Head of Household, and Married Filing Separate returns.”

It is further elaborated in the Georgia INSTRUCTIONS FOR INDIVIDUAL AND FIDUCIARIES ESTIMATED TAX (500ES), where it repeats the new standard deductions above and also notes, “After 12/31/23, there are no more additional $1,300 deductions for taxpayers who are age 65 or older or blind.”

[AmyC]

You are filing a 2023 tax return so all laws for 2023 should be used in the 2023 return. You are quoting 2024 tax law. Can you clarify what lines are wrong on your return using 2023 laws?

[temay]

TurboTax provides the capability to calculate 2024 estimated quarterly tax payments in its 2023 tax return software.  Estimated taxes are needed when you have income (like bank interest) which does not have withholding tax taken from it.  TurboTax will print the four federal and state estimated tax submittal forms that a taxpayer needs to use.

TurboTax Deluxe provides a few different ways to calculate the next year's estimated tax.  For example, one option is to just pay 100% of your 2023 taxes.

Another option is for the taxpayer to make an estimate of their anticipated 2024 income and TurboTax will calculate the amount of taxes due.  This is the calculation that is wrong for the State of Georgia.

In order for taxpayers (or TurboTax for them) to make this calculation, the State of Georgia has included in its 2023 tax booklet and its 2024 estimated tax form the changes between the 2023 and the 2024 tax laws.  In my original message, I provided the sites.

TurboTax included in its 2024 estimated tax calculation only the new flat rate tax that started on January 1st.  The TurboTax calculation did not include the changes to the deductions.

One of the problems with the TurboTax worksheet for Georgia Estimated Taxes is that TurboTax groups adjustments and deductions in a single line.  If the TurboTax worksheet followed the same format as the State of George estimated tax worksheet, anyone could clearly see the error.