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What is the Georgia Qualified Caregiving Expense Credit?

Understanding the Benefits and Eligibility for Georgia's Caregiving Tax Credit

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Family Tax Advisor

Tax Expert

3 min read
Published on 6 months ago
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The Georgia Qualified Caregiving Expense Credit, also known as Tax Credit 204, is a state tax credit available to eligible taxpayers who incur qualified caregiving expenses for a dependent or qualifying family member. This credit is designed to assist individuals who provide care for elderly or disabled family members, helping to offset the cost of such services.

Eligibility and Calculation

  • Qualified Expenses: The credit is based on qualified caregiving expenses, which must be documented and directly related to the care of a dependent or qualifying family member.
  • Percentage Limitation: The credit is calculated as 10% of the qualified caregiving expenses (Line 1 × 10% = Line 3).
  • Maximum Credit: The maximum credit allowed is $150.00 (Line 4).
  • Final Credit Amount: The taxpayer claims the lesser of Line 3 (10% of expenses) or Line 4 ($150.00) on Line 5 of Form IND-CR 204.

Reporting Requirements

  • The credit is claimed on Form IND-CR 204, which must be attached to the taxpayer’s Georgia individual income tax return (Form 500 or Form 500X).
  • The amount claimed on Line 6 of Form IND-CR 204 must be entered on the IND-CR Summary Worksheet, Line 4, and then transferred to Form 500/500X, Page 3, Line 20.

Source:

Form IND-CR

Form 500

Disclaimer: Always verify details with the official Georgia Department of Revenue forms and instructions. For complex situations, consult a CPA or tax professional.

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Key Takeaways

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