All forms of income that are earned in Georgia are subject to state taxation, including wages and salaries from employment as well as net earnings received from self-employment. Some forms of unearned income are also taxable, such as gambling proceeds, bank interest, and dividends. On the other hand, there are some unearned income sources, such as Social Security benefits, that are not taxable.https://etax.dor.ga.gov/inctax/IndGeneralInfo.aspx

Not all Georgia taxpayers are obligated to file a state tax return. The filing requirements are based on your total income, your filing status, and your age, so consult the instruction booklet to see if you must submit a tax form. Even if you are not required to file, it may be to your advantage to do so, especially if you are entitled to receive a refund. If you do file your return, be sure to submit it by the deadline of April 18, 2011.https://etax.dor.ga.gov/inctax/IndGeneralInfo.aspx 

The first thing to do when preparing your Georgia state tax return is to get all of the necessary paperwork you need in one place. This will make it easier for you to find what you need when you begin the tax forms. You will need the following:

1. Your Social Security number
2. Your complete mailing address
3. The full name and Social Security number of your spouse if you are filing a joint tax return
4. The full name and Social Security number of any dependents you will be claiming
5. Your earned income for the year––Employees will use the total state taxable wages as reported on Form W-2 or Form 1099. Self-employed individuals will need to add up their total earnings and then subtract the qualified business expenses they are able to claim.
6. The unearned income you received that is also subject to taxation, including unemployment compensation, rental property income, and retirement distributions
7. Your state income taxes already paid during the year––If you are employed, these were likely taken out of your regular pay. The total will appear on Form W-2 as state taxes withheld. If you are self-employed, simply add up any estimated state tax payments you made.
8. A copy of your completed federal income tax return if you are filing one

Like several other state forms, the Georgia tax return uses federal adjusted gross income as a starting point for calculating your state tax. So if you are going to be filing a federal return, complete that before you begin your state return. If you will not be filing a federal tax form, you may wish to talk with a tax preparer who can help you to calculate your adjusted gross income.c

Your next step is to begin preparing the Georgia state tax return. If possible, consider electronically filing your forms. E-filing is safe, convenient, and an environmentally friendly way to submit your return. It also allows your return to be processed much faster than paper filing. If you are due a refund, you may be able to receive it up to six weeks faster if you e-file.c   

The Georgia Department of Revenue lists electronic tax service providers on its website. Some of these offer e-filing services for free, depending on your age and total income. If you will be preparing your federal tax form by using tax software or a tax preparation website, you will be given the option to include your Georgia return for an additional fee. To file your return using any of the electronic methods, simply use the information you collected in step 1 and follow the program instructions.c 

In order to file your Georgia tax return by mail, you need to get a copy of the state tax form. If you have Internet access, you can download Form 500 "Georgia Individual Income Tax Return" and the form instruction booklet from the Georgia Department of Revenue website.c  If you don't have access to the Internet, you can generally pick up paper copies of these from your local library.

Begin the form by writing in your full name and Social Security and your spouse's, if applicable. Complete the address section then select your filing status and residency status. Enter the names and Social Security numbers of all of your eligible dependents.c

Take some time to stop and read the tax form instruction booklet carefully. Be sure to review the sections regarding income adjustments and tax credits. Adjustments to income may be necessary to account for income you received that is taxed by Georgia but exempt from federal taxes or vice versa. State tax credits are various deductions that directly reduce your tax liability.c  

Take out your IRS Form 1040 and find the amount of your federal adjusted gross income. It will appear near the bottom on page one of the form. Enter this total on line 8 of your Georgia return. Turn to Schedule 1 in the form instruction booklet and fill it out to figure out any necessary income adjustments. Carry that amount to line 9 to arrive at your Georgia adjusted gross income on line 10.c 

Subtract your standard or itemized deductions and your total exemption allowances on lines 11 through 14. This will calculate your net Georgia taxable income on line 15. Next, consult the tax table located in the instructions to assess the amount of state tax that you owe on your income. Enter this amount on line 16.c  

Deduct any applicable state tax credits and the amount of your state taxes already paid through withholding or estimated tax payments. Your final result will be either a balance due on line 36 or a refund on line 37.c

Sign and date the form and have your spouse do the same. Make a copy of the completed return for your records. If you have a balance due, write out a check or money order for the total. Send the return, along with any necessary payment, to the appropriate address listed on the form. Be sure to submit both by April 18, 2011.c  If you will not be able to submit your state return before the filing deadline, you should file a Georgia state tax extension.