2023 Tax Season Updates

By Darcy Pyle, GA DOR

It’s tax season and that means updates and changes! While we have a few small changes to the pass-through entity election in 2023, the 2023 tax filing season is relatively calm as far as changes go. We should see the 2023 season be very similar to the 2022 tax filing season.

In January, the GSCPA met with members of the Georgia Department of Revenue to discuss upcoming changes, challenges, and things to be watching for during the 2023 tax season. Along with the GA DOR, we have compiled a list of the main issues that are facing tax preparers filing Georgia tax returns.

Withholding Tax:
Added an allocation schedule to forms G2-A and G2-RP.

Individual Income Tax:

• Added a field for Unborn Dependents.
  • Separate fields for qualified or live dependents (7a) and unborn (7b).
  • No longer allowed to claim on Schedule 1, line 12.
• Schedule 1, added Depreciation line to both Additions and Subtractions section.
• New Charitable Contribution for Disabled Veterans Scholarship Fund.
• New NOL schedule:
  • For taxable years 2023 and forward.
  • The old 500 NOL form will have to be used for tax years 2022 and older.

Fiduciary Tax:

• New NOL schedule:
  • For taxable years 2023 and forward.
  • The old 500 NOL form will have to be used for tax years 2022 and older.
• Ratio line cannot be a negative number, nor can it exceed 100%.

 Corporate Tax:

• Schedule 1, New line for Passive Loss/ Capital Loss Deductions.
• NOL Carryforward worksheet – choose type of loss for appropriate carry forward rules.
• Consolidated Election:
  • New Schedule 12:
    • Completed by the Parent only.
    • Lists all members in the Georgia Consolidated Group.
    • Will include Net Worth payments (only one payment required).
  • Regulations will provide guidance once posted.
  • New checkbox to cease a current consolidated approval.
  • If a sub makes a net worth payment, it will be refunded to the sub.  Payments will not be transferred.

Partnership Tax:

• Schedule 1, New line for Passive Loss/ Capital Loss Deductions.
• Schedule 7 is REQUIRED, especially if electing to pay at the Entity Level.
  • Do not round the ratio for within GA or Everywhere.
  • Rolls up to Schedule 2.

Paying at the Entity Level:

• If estimated payments were not made at the entity level, and they were made at the Partner Level,
• Check the UET exception box on the return, and
• Complete the 600 UET form, as if the entity made such payments or applied such credits or attributes.
• Attach the 600 UET with the return.
• The individuals will receive a refund of overpayment, and the entity will have to pay the tax.  However, the UET will reduce or possibly eliminate UET penalty.