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What Is the Georgia Pass-Through Entity Tax Election?

Short answer

Eligible Georgia S corporations and partnerships can elect to pay certain income tax at the entity level. The election changes how qualifying income and related tax are handled on the entity and owner returns.

Why this matters

Georgia’s election is made on the applicable entity return by its due date, including a valid extension, and becomes irrevocable after that deadline. Owners should coordinate the state return with their individual returns and estimated payments.

Example

A partnership considering the election should model the Georgia entity tax and each owner’s return before filing Form 700. An election that helps one owner may have a different effect on another.

What to review

Review eligibility, owners’ residency, income allocation, election deadline, estimates and current Georgia instructions.

Official source: dor.georgia.gov/hb-149-pass-through-entity-tax-faq

Related service: Business Tax & Tax Planning

This answer is general information, not advice for your specific situation. Tax rules change, so please contact us to review your facts before acting.

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