Georgia’s New Tax Conformity Bill: What It Means for Your State Return

If you filed your Georgia taxes before Governor Kemp signed HB 1199 into law, you may need to file an amended return. Here’s what happened and what to do next.

Earlier this week, Governor Kemp signed the Georgia Conformity Bill (HB 1199) into law—and if you’re a Georgia taxpayer, it’s worth a few minutes of your time to understand what it means.

This legislation updates Georgia tax law to align with the federal One Big Beautiful Bill Act (OB3) in most areas. But here’s the important part: Georgia chose not to conform on a couple of key provisions, and those differences could affect your state tax return.

Where Georgia Broke From Federal Law

The SALT Deduction Cap

At the federal level, the OB3 raised the State and Local Tax (SALT) deduction cap to $40,000. Georgia, however, voted not to follow suit. The state’s SALT limitation will remain at $10,000.

What does that mean in practice? If you itemized your deductions and included more than $10,000 in state and local taxes—think income tax withholding, property taxes, and ad valorem taxes paid to Georgia or other states—you may need to amend your Georgia return to reduce those itemized deductions back to the $10,000 state maximum.

No Tax on Tips and No Tax on Overtime

The federal OB3 introduced provisions eliminating taxes on tips and overtime pay. Georgia also chose not to adopt these. State lawmakers indicated that these policies would require separate legislation, given the significant fiscal implications involved.

So, if you took either of those deductions on your federal return, you may need to file an amended Georgia return adding that income back for state purposes.

What You Should Do Now

The good news? Most self-preparation tax software platforms are already aware of these changes. Some platforms, such as TurboTax have begun notifying affected users directly, and in many cases, amending a return through these platforms can take less than 15 minutes.

If you work with a CPA, I’d encourage you to reach out to your preparer to ask whether your return may need to be amended in light of HB 1199.

The Deadline Still Matters

The Georgia Department of Revenue has made its position clear: returns filed incorrectly will be expected to be amended. While no formal penalty or interest relief has been announced, a waiver can always be requested. That said, returns amended prior to the April 15th deadline—with any additional tax paid—would generally not be subject to additional penalties or interest.

The bottom line: if this applies to you, it’s worth acting sooner rather than later.

We’re Here to Help

If you have questions about how the Georgia Conformity Bill may affect your specific situation, please don’t hesitate to reach out to our team. At BIP Wealth, we work closely with our clients and their tax professionals to stay ahead of changes like these so you can focus on what matters most.

This content is general in nature and is for informational purposes only. It is not intended as tax advice and should not be relied upon as such. Individual circumstances vary, and taxpayers should consult with their own tax professional before taking action. BIP Wealth, LLC is a registered investment adviser (RIA). Registration does not imply a certain level of skill or training.