You Can Still Get the Georgia Surplus Refund

Here’s what to do if you have yet to receive the Georgia Surplus Tax Refund

Introduction

Hey there, Georgians, welcome to Bottomline Tax! If you’re reading this after October 16 you probably got a lawful extension to file your 2022 income tax returns and want to know if your surplus tax return is anywhere near your pocket. Here’s what to do next. Otherwise, just keep reading.

If you’re like me, you probably love getting some extra cash in your pocket. Well, I have some good news for you: you might be eligible for a special state income tax refund this year! That’s right, thanks to a bill signed by Governor Kemp in March 2023, some of us will be getting a nice surprise in our mailboxes or bank accounts soon.

But what is this refund all about? How do you know if you qualify? How much will you get? And what does it mean for our state’s economy and budget? In this blog post, I’ll try to answer all these questions and more. So sit back, relax, and read on to learn everything you need to know about the Georgia surplus tax refund.

What is the Georgia surplus tax refund?

The Georgia surplus tax refund is a one-time tax credit that was created by House Bill 162, which was passed by the General Assembly and signed by Governor Kemp in March 2023. The bill allows for a tax refund out of the state’s surplus to Georgia filers who meet certain eligibility requirements. The surplus is the amount of money that the state collects in revenue that exceeds its spending in a given fiscal year.

The purpose of the refund is to return some of the surplus money to taxpayers, who contributed to it through their income taxes. The bill also aims to stimulate the economy by increasing consumer spending and saving. According to Governor Kemp, “This is a historic day for our state as we deliver on our promise to put hardworking Georgians first.”

Who is eligible for the refund?

To be eligible for the refund, you must meet two main criteria:

1. You must file your individual income tax return for tax year 2021 and tax year 2022 by the April 18, 2023 deadline (or by October 16, 2023 if an extension was granted) .
2. You must have paid more in state income taxes than you received in credits for both tax years .

If you meet these criteria, you will automatically receive the refund. You do not need to apply for it or do anything else. However, if you owe any outstanding tax liabilities, penalties, fees, or interest to the state, your refund will be reduced by the amount you owe .

I filed my 2022 return, where is my surplus tax refund?

If you filed your taxes by the extended deadline of October 16, 2023, and are expecting a Georgia Surplus Tax Refund, you should allow 8 weeks from that date for your refund to be issued. This would take us to December 11, 2023. If you haven’t received your refund by then, it would be a good idea to check the status of your refund online or contact the Georgia Department of Revenue for further assistance.

You can email them at taxpayer.services@dor.ga.gov or call them at 1-877-GADOR11 (1-877-423-6711) and select option 3. You will need to provide your name, Social Security number, tax year, and filing status . You can also request a written explanation of why your refund is delayed by mailing a letter to:

Georgia Department of Revenue
Processing Center
P.O. Box 740399
Atlanta, GA 30374-0399

How can one check their refund status?

If you are eligible for the refund, you can check the status of your refund online using the Georgia Surplus Tax Refund page on the Department of Revenue website. You will need to enter your Social Security number and the amount of your refund . You can also call the Department of Revenue at 1-877-GADOR11 (1-877-423-6711) to check your refund status .

The Department of Revenue will begin issuing refunds in May 2023 and will continue until all eligible refunds are processed . You can choose to receive your refund by paper check or direct deposit. If you choose direct deposit, you will need to provide your bank account information on your tax return. If you choose paper check, you will receive your refund by mail at the address on your tax return .

How is the amount of refund calculated?

The amount of your refund depends on your filing status and the total amount of surplus available for refunds. The bill sets a maximum refund amount for each filing status as follows:

• Up to $250 for single filers
• Up to $375 for single adults who head a household with dependents
• Up to $500 for married couples filing jointly

The actual refund amount may be lower than the maximum amount, depending on how many taxpayers are eligible and how much surplus money is available. The bill allocates $1.04 billion for refunds out of the $1.6 billion surplus projected for fiscal year 2023 . The Department of Revenue will divide the available funds by the number of eligible taxpayers to determine the actual refund amount for each filing status .

For example, let’s say there are 3 million eligible taxpayers, and the available funds are $1 billion. The Department of Revenue will divide $1 billion by 3 million to get $333.33. This means that each eligible taxpayer will receive $333.33, regardless of their filing status. This is lower than the maximum amounts set by the bill, but still a nice bonus for taxpayers.

What are some common questions about the refund?

Here are some frequently asked questions and answers about the refund:

How can I make additional extra cash?

If you like to hang out online, you can make additional extra cash by doing simple online tasks. Here’s how you do it.

How does the refund impact taxpayers?

The refund is a one-time payment of $50 to $110 per taxpayer, depending on their filing status and income level. The refund is intended to return some of the excess revenue collected by the state in fiscal year 2020, which ended with a $3.2 billion surplus. The refund is expected to benefit about 4.6 million taxpayers, or 95% of those who filed a 2020 Georgia income tax return.

How is the refund distributed?

The refund is automatically issued to eligible taxpayers who filed a 2020 Georgia income tax return by the original due date of May 17, 2021. The refund is sent by direct deposit or paper check, depending on how the taxpayer received their 2020 refund or paid their balance due. The refund is separate from any federal stimulus payments or child tax credit payments. The refund is not taxable income for Georgia purposes, but it may be taxable for federal purposes.

What do experts say about the refund?

The refund has received mixed reactions from experts and policymakers. Some argue that the refund is a fair and simple way to return excess revenue to taxpayers, especially those who have been struggling during the pandemic. Others contend that the refund is too small to make a meaningful difference for most taxpayers, and that the money would be better spent on public services such as education, health care, and infrastructure.

How does Georgia’s refund compare with other states?

Georgia is one of several states that have issued refunds or tax cuts to taxpayers in response to higher-than-expected revenues in fiscal year 2020. Other states include Idaho, Iowa, Minnesota, Montana, Nebraska, North Carolina, Ohio, Oklahoma, and Utah. The amount and eligibility criteria of the refunds vary by state, but generally range from $50 to $300 per taxpayer. Some states have also reduced their income tax rates or expanded their tax credits or deductions.

What is the current state of Georgia’s budget?

Georgia’s budget for fiscal year 2022, which began on July 1, 2021, is based on an estimated revenue of $27.2 billion, an increase of 10.6% from fiscal year 2021. The budget includes funding increases for education, health care, public safety,
and economic development. The budget also restores some of the spending cuts that were made in fiscal year 2021 due to the pandemic. The budget does not include any new taxes or fees, but it does include the refund as a one-time expense.

How was the surplus generated?

The surplus was generated by a combination of factors, including:

– Higher-than-expected income tax collections, driven by strong earnings from high-income taxpayers and businesses, as well as federal stimulus payments and unemployment benefits that boosted taxable income for many taxpayers.
– Higher-than-expected sales tax collections, driven by increased consumer spending on online purchases, groceries, home improvement, and other goods and services.
– Lower-than-expected spending, due to spending cuts and savings in various state agencies and programs, as well as federal relief funds that covered some of the state’s pandemic-related costs.

What changes have been made to the Georgia income tax rate?

The Georgia income tax rate has been reduced from 6% to 5.75% for tax year 2019 and onwards. This rate applies to all taxpayers, regardless of their filing status or income level. The rate reduction was part of a larger tax reform package that was passed by the Georgia General Assembly in 2018. The package also included changes to the standard deduction, the personal exemption, and some tax credits and deductions.

What recent legislation affects income tax?

In addition to the tax reform package of 2018, some recent legislation that affects income tax includes:

– House Bill 593, which created the refund for fiscal year 2020 and set the refund amount and eligibility criteria.
– House Bill 846, which conformed Georgia’s tax code to some of the federal changes made by the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 and the Consolidated Appropriations Act of 2021. The bill also excluded certain types of income from taxation, such as forgiven Paycheck Protection Program loans and disaster relief payments.
– Senate Bill 6, which expanded the Georgia film tax credit and created a new tax credit for video game development.

How do these changes impact taxpayers?

These changes impact taxpayers in different ways, depending on their individual circumstances. Some of the potential impacts include:

– Lowering their overall tax liability due to the rate reduction, the refund, or the exclusion of certain types of income.
– Increasing their overall tax liability due to the elimination or reduction of some tax credits or deductions.
– Simplifying their tax filing process due to the conformity with federal changes or the increase in the standard deduction.
– Complicating their tax filing process due to the nonconformity with some federal changes or the refund calculation.

To find out how these changes affect your specific situation, you may want to consult a tax professional or use an online tax calculator.