News Summary

Governor Brian Kemp has signed House Bill 112, introducing a one-time surplus tax refund for eligible taxpayers in Georgia. Individuals can receive up to $250, heads of household up to $375, and married couples filing jointly can obtain up to $500. Taxpayers eligible for the refund must file their tax returns for 2023 and 2024 by May 1, 2025. In conjunction with this measure, the state income tax rate will also be reduced from 5.39% to 5.19%. These initiatives aim to support residents amid rising living costs while ensuring efficient processing of refunds.

Atlanta, Georgia – On April 15, Governor Brian Kemp signed House Bill 112, also known as the Georgia Surplus Tax Refund, which will provide eligible taxpayers with a one-time tax refund of up to $500. This initiative aims to return excess revenue to hardworking Georgians based on their tax filings, as part of a broader commitment to fiscal responsibility.

The tax refund eligibility details indicate that individuals and those married filing separately can expect a refund of up to $250, heads of household can receive up to $375, and married couples filing jointly can obtain a refund of up to $500. Taxpayers must file their tax return for both the 2023 and 2024 tax years by May 1, 2025, to qualify for this refund.

To assist residents in determining their eligibility, the Georgia Department of Revenue has a dedicated website where taxpayers can access relevant information. However, it should be noted that the status tracker specifically for this refund is currently limited to past years’ filings.

The Georgia Department of Revenue has advised taxpayers to anticipate a wait time of 6-8 weeks for the processing and issuance of these refunds after they submit their tax returns. The refunds can be issued either through direct deposit or via mail, depending on the option selected by the taxpayer on their return form. Approximately 75% of refunds are expected to be processed through direct deposit, making it a quicker option for many individuals.

In addition to the surplus tax refund, Governor Kemp signed House Bill 111, which lowers the state income tax rate from 5.39% to 5.19%. The cumulative effect of these two measures is projected to impact nearly $1 billion in state revenue, significantly altering the financial landscape for both the state government and taxpayers.

It is important to highlight that these tax refunds will be automatically processed once the 2024 tax returns are filed, providing efficiency and ease for those eligible. Furthermore, this refund is classified as non-taxable income under Georgia law, ensuring that residents do not face additional tax liabilities as a result of receiving this refund.

Governor Kemp has articulated that these financial initiatives not only reflect a disciplined approach to fiscal management but also a commitment to returning surplus funds to taxpayers. This is the third consecutive year that the state has implemented rebate programs, which aim to alleviate the financial burden faced by families amid rising living costs.

While the refund and tax rate reduction initiatives are designed to benefit low-income residents, some analysts have raised concerns that wealthier individuals may disproportionately benefit from such measures. Taxpayers must have incurred a tax liability in the year 2023 to qualify, ensuring that those who contribute to the state’s tax revenue are the recipients of these rebates.

As Georgia moves forward with these tax reforms and refunds, the state government continues to emphasize its resolve to help residents navigate economic challenges, aiming to improve the financial well-being of families across the state. By returning surplus funds and reducing tax rates, Georgia demonstrates its ongoing commitment to supporting its residents and fostering economic stability.