HB 1302 Tax Refund Explained

HB 1302 allows Georgia taxpayers a refund of some or all of the 2020 income taxes due.

As published on dor.georgia.gov, the Georgia General Assembly recently passed, and Governor Kemp signed, legislation allowing for an additional refund of income taxes from 2020 because the state has experienced a revenue surplus.

This law can have a great impact on the regional economy because it puts money back into hands of hardworking Georgians.

How do I determine what I might receive from this refund?

It depends on your filing status. Single filers and married individuals who file separately could receive a maximum refund of $250. To calculate the exact amount, please visit this page. Please refer to your 2020 income tax return, and contact Daniel Ahart Tax Service® if you need help with calculating this. Read also: Tax Estimators Calculators.

Who qualifies for this tax refund?

You need to have filed your 2020 return and your 2021 return by the deadline for filing the 2021 return (including any extension granted by the Department of Revenue). Read also: Personal Taxes.

Who is elegible to this 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,” explains Daniel Ahart, chief tax officer at the tax preparation company Daniel Ahart Tax Service®

Part-year filers who file individual tax returns for both years (2020 and 2021) will be eligible for a proportional refund equal to the maximum amounts based on filing status multiplied by the share of their income taxable in Georgia.

When will I receive this refund and what happens if I already filed?

The Department of Revenue will attempt to include the HB 1302 refund along with other refund amounts due. For taxpayers whose 2021 returns have already been processed, the Department of Revenue will issue a separate refund.

In a nutshell, under HB 1302, any refund due would be subject to offset first against existing liabilities owed to the state. Any remaining amount will be refunded to the taxpayer. If you qualify for this tax refund, your tax liability will shrink as a result. To learn more, please contact Daniel Ahart Tax Service® and more importantly, don’t pay your taxes late.

What Happens If You File Or Pay Your Taxes Late?

Two penalties may apply. One penalty is for filing late and the other is for paying late. They can add up fast. Interest accrues on top of penalties.

• Late-filing penalty. If taxpayers file their 2021 tax return more than 60 days late, the minimum penalty is usually $210. If the tax owed is less than $210, it’s 100 percent of the unpaid tax. Otherwise, the penalty can be as much as 5 percent of the unpaid tax each month up to a maximum of 25 percent. There’s no penalty for filing late, if the taxpayers is due a refund.
• Late-payment penalty. You’ll likely end up owing a late payment penalty of 0.5% per month, or fraction thereof, until the tax is paid. The maximum late payment penalty is 25% of the amount due. You’ll also likely owe interest on whatever amount you didn’t pay by the filing deadline.

Get The Help You Need When You Are Ready To File

Daniel Ahart Tax Service® prepares all tax returns, helps solve tax problems, and prepares back taxes. 22 Area Locations in Georgia.

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