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How to claim IRC 1341 repayment credit for state Georgia?

I am trying to claim IRC 1341 credit for a $10,000 bonus repayment I made in 2022, which was initially received in 2021. Thanks to the forum I figured out how to claim it for Federal using Turbotax desktop. However, not sure how should I do it for Georgia. I did found a GA code said GA  allows IRC 1341, but it didn't mention where to put that credit.  Anyone could help? Many thanks in advance!

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3 Replies
DianeW777
Expert Alumni

How to claim IRC 1341 repayment credit for state Georgia?

Yes.  The tax benefit shall be the reduced tax for the current tax year due to the deduction for the repaid income or the reduction in tax for the prior year or years due to the exclusion of the repaid income. The reduction in tax shall qualify as a refundable tax credit on the return for the current year.  

(b) No credit will be allowed unless Georgia income tax was actually paid in the prior year or if the taxpayer was not subject to Georgia income tax.  § 48-7-28.1 - Tax benefit

 

This would require you to print and mail the tax return then adding the credit as a payment on Line 27, Form 500, and including an explanation with the return about the repayment. There is no income reduction on the Georgia (GA) return based on the information above. There is no specific credit code for this entry on your GA return.

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How to claim IRC 1341 repayment credit for state Georgia?

Thank you for the reply!

 

Just to make sure I understand it correctly, it sounds like all I need to do is calculate the credit amount, say $400, and add it to the existing value in line 27 of form 500, say $200, so I will end up with $600 in line 27. and I don't need to add the $400 anywhere else in the form. Correct? 

 

Also, for the explanation, shall I just write on a paper explaining how I calculated the credit? or is there any materials I should include to support it?

 

Thanks!

How to claim IRC 1341 repayment credit for state Georgia?

Actually, I just noticed that in the tax code page you share, it says

“(a) If a taxpayer repays in the current tax year certain amounts of income that were subject to tax under this chapter in a prior year and a tax benefit would be allowed under similar circumstances under Section 1341 of the Internal Revenue Code, a tax benefit shall be allowed on the Georgia income tax return. The tax benefit shall be the reduced tax for the current tax year due to the deduction for the repaid income or the reduction in tax for the prior year or years due to the exclusion of the repaid income. The reduction in tax shall qualify as a refundable tax credit on the return for the current year.

 

and  I noticed in form 500, line 26 is "Schedule 2B Refundable Tax Credits", can I use line 26 to input the credit?

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