IT-501/501X — Fiduciary Income Tax Instruction Booklet

# preamble

Georgia Fiduciary Income Tax 501 and 501X Forms and Instructions What's New? Online Services

# General Instructions

Tax Credits List of Credits and Codes dor.georgia.gov 1-877-423-6711 Follow us on social media:

From The Commissioner Did you know that by registering an account with the Department of Revenue's Georgia Tax Center (GTC), you can sign up to receive notifications when any activity takes place on your account? These notifications help you closely monitor your tax status and help combat fraudulent activity. Visit gtc.dor.ga.gov to register. For assistance, you may visit our self-service instructional videos at dor.georgia.gov/gtc-videos. Did you also know that taxpayers who file their returns electronically and have their refunds directly deposited into their bank accounts receive their refunds much more quickly than those who filed a paper return? If you have been considering electronic filing, some of the benefits include: • Faster and more accurate processing • Receiving your refund more quickly by either mail or direct deposit • The ability to file from your home PC or have your taxes prepared by a professional electronic return originator • Elimination of mailing paper returns If you file electronically and need to make a payment, you may pay by electronic check using the Georgia Tax Center. Visit gtc.dor.ga.gov or visit our self-service instructional videos at dor.georgia.gov/gtc-videos. For additional information contact the Taxpayer Customer Contact Center at 1-877-423-6711. The Department of Revenue, as outlined in the Taxpayer Bill of Rights, will provide "fair, courteous and timely service" to the taxpayers of Georgia. We have implemented several initiatives to ensure we uphold that standard. Our mission is to administer the tax laws of the state of Georgia fairly and efficiently in order to promote public confidence and compliance while providing excellent customer service. Visit https://dor. georgia.gov/taxpayer-bill-rights to view a copy of the Taxpayer Bill of Rights. David J. Burge Revenue Commissioner

Inside this Booklet Filing Checklist....................................................................23 Form 501 Instructions.........................................................8 Georgia Tax Center.............................................................4 Mailing Address...................................................................6 Net Operating Loss Instructions..................................13 Tax Credits............................................................................19 Taxpayer's Assistance.......................................................6 Tax forms: https://dor.georgia.gov/documents/forms/type/ estate-and-trust Online Assistance Find us online by going to dor.georgia.gov: • Download Tax Forms • Find Answers to Frequently Asked Questions • Access Where's My Refund • View the Taxpayer Bill of Rights • Find Georgia Regulations Get help with: • Refunds • Billing • Web Access Customer Contact Center: 1-877-423-6711 Payment Options GTC accepts fiduciary income and estimated tax payments. For information about GTC, visit our website at gtc.dor.ga.gov or visit our self-service instructional videos at dor.georgia.gov/georgia-tax-center-help. The Georgia Department of Revenue accepts Visa, American Express, MasterCard, Discover, PayPal, or electronic check as payment for current year income tax due on original Forms 501 and 501X, as well as for liabilities presented to taxpayers via Georgia Department of Revenue assessment notices. Payments can be made on GTC. Electronic check payments can be made outside a GTC logon, all other payments require a GTC account. There is a convenience fee for this service that is paid directly to the credit card processing company. There is a convenience fee added to credit cards and PayPal for this service that is paid directly to the payment processing company (This does not apply to electronic checks). For more information on payments, visit our website at dor.georgia.gov/pay-taxes or contact the Taxpayer Services Customer Contact Center at 1-877-423-6711. Georgia Department of Revenue

What is the Georgia Tax Center? The Georgia Tax Center (GTC) is the Department of Revenue's secure self-service customer facing portal for making online Individual, Fiduciary, or Business Tax payments and for corresponding with the Department. Who Can Sign Up? Any taxpayer that pays taxes in the State of Georgia is eligible to use GTC for Adult Entertainment Tax, Alcohol License, Composite Tax, Corporate Income Tax, Fiduciary Income Tax, Fireworks Excise Tax, International Fuel Tax, Motor Fuel Distributor Tax, Non-Prepaid 911 Charge, Prepaid Wireless 911 Charge, Public Service Commission, Public Utilities and Airlines, Qualified Timberland Property, Railroad Equipment, Sales & Use Tax, State Hotel-Motel Fee, Tobacco License, Transportation Services Tax, Withholding Misc., Withholding Misc. Film and Withholding Tax. For more information, see gtc.dor.ga.gov. Note: Third party filers can sign up for GTC to access their clients' information with the proper documentation and authorization. For more information see https://dor.georgia.gov/taxes/information-taxprofessionals/third-party-filers How Do I Sign Up? To use GTC, visit our website at gtc.dor.ga.gov. First time users must register before accessing tax accounts. To register, you will need: • Tax type account number • Federal Employer Identification Number (FEIN) / Social Security Number (SSN) • Amount of your last payment • ZIP code of your business location • A valid e-mail address Please visit our website for instructional videos and frequently asked questions. dor.georgia.gov/gtc-help GTC Features • Manage your tax credits • Submit a Power of Attorney (POA) • Request a refund • Respond to document request notices • Address updates • Penalty waivers • Protest of Proposed Assessments • Register and add access to accounts • View account balances • Make payments as a direct debit from a US bank and/or using credit or debit cards • View copies of correspondence • Request Tax Clearance Letter • For a complete list of features visit GTC at gtc.dor.ga.gov

Direct Deposit Information Note: If you are a first-time Georgia filer or if you have not filed Georgia taxes in five or more years, you will receive your refund via paper check. This applies both to electronic and paper return filers. Complete the direct deposit information NOTE: To prevent fraud, the Department will only re-fund electronically made payments to the account from which they were paid. E.g., if you made estimat-ed payments through GTC, they will not be refunded to a different account. Check the appropriate box (Checking or Savings) for the type of account. Do not check more than one box. You must check the correct box to ensure your direct deposit is accepted. Enter your nine digit routing number. The first two digits must be 01 through 12 or 21 through 32. Ask your financial institution for the correct routing number to enter on Line 20a if: • The routing number on a deposit slip is different from the routing number on your checks. • The deposit is to a savings account that does not allow you to write checks, or • Your checks state they are payable through a financial institution different from the one at which you have your checking account. Enter your account number from left to right and leave unused boxes blank. Include hyphens, but omit spaces and special symbols. The account number can be up to 17 characters (both numbers and letters). Example: On the sample check, the routing number is 807100013. John Doe would use that routing number unless their financial institution instructed them to use a different routing number for direct deposits. The account number is 978653421. Do not include the check number. On the sample check on the next page, the check number is 5678. Direct Deposit Rejects If any of the following apply, your direct deposit request may be rejected and a check will be mailed: • Any numbers or letters are crossed out or whited out. • An invalid checking, savings, or routing number was entered. • Your financial institution may not allow a joint refund to be deposited into an individual account. The State of Georgia is not responsible if a financial institution rejects a direct deposit. Signature Section Please sign and date your return. The paid preparer must sign the return.

Taxpayer's Assistance and Resources Find us on the web by going to dor.georgia.gov • Download Tax Forms • Find Answers to Frequently Asked Questions • Access Where's My Refund • View the Taxpayer Bill of Rights • Find Georgia Regulations Customer Contact Center: 1-877-423-6711 Georgia Relay - Deaf and hard of hearing taxpayers (TDD) visit georgiarelay.org Mailing Address

# TAX RETURNS PROCESSING CENTER GEORGIA DEPARTMENT OF REVENUE

PO BOX 740397 ATLANTA, GA 30374-0397 Note: Sending your return by certified mail delays the processing of your return and refund. Two-Dimensional (2D) Barcode Returns The two-dimensional (2D) barcode that appears on your return is the encoded information you entered on your return. This barcode reduces errors and saves time in processing the return. The 2D barcode is only visible after your return has been printed. The Department of Revenue has given approval to certain software companies to produce tax programs that include a two-dimensional (2D) barcode. A list of these companies is available on our website at https://dor.georgia.gov/approved-software-providers. Note: The Department of Revenue encourages the use of 2D barcode returns; however, we neither support nor recommend any software company. Failure to mail your return to the correct address may cause processing delays.

# What's New

2025 Income Tax Changes: Effective January 1, 2025, the income tax rate is 5.19% Federal Tax Changes/Conformity , Legislation, and other Policy Information Visit dor.georgia.gov/taxes/tax-rules-and-policies for more information on: • Federal Tax Changes/Conformity with Federal Changes • Regulations • Rules and Policies For legislative information see: dor.georgia.gov/legis-summary Georgia conforms to the Internal Revenue Code, as amended, provided for in Federal law enacted on or before January 1, 2025. Georgia has not adopted the Federal tax law changes in The Act of 2025 (also known as the One Big Beautiful Bill Act) due to it being signed on July 4, 2025. For more details on Georgia's conformity to Federal tax laws, please see 2025 Fiduciary Instructions Booklet. Georgia did not adopt the revised net operating loss provisions in the 2020 CARES Act and the modification to the Code Section 461(l) limitation in the 2020 CARES Act and the American Rescue Plan Act of 2021. • For losses incurred in taxable years beginning on or after January 1, 2018, there is an 80% limitation on the usage of net operating losses (the 80% limitation is based on Georgia taxable net income). • The I.R.C. Section 461(l) adjustment (limitation on losses for noncorporate taxpayers) is required in the same manner as was required before the CARES Act. • For more information on Georgia's treatment of the Cares Act, see https://dor.georgia.gov/taxes/taxrules-and-policies/income-tax-federal-tax-changes

501 General Instructions If you are a Trust which is a Qualified Funeral Trust or an Estate which is a Bankruptcy Estate, please check the appropriate box on Page 1, fill in the correct tax on Line 8 and attach supporting documentation. Qualified Funeral Trust. A qualified funeral trust is any trust that meets the following requirements: 1. The trust arises as a result of a contract with a person engaged in the trade or business of providing funeral or burial services or property necessary to provide the services. 2. The sole purpose of the trust is to hold, invest, and reinvest funds in the trust and to use the funds solely to make payments for the services or property for the benefit of the beneficiaries of the trust. 3. The only beneficiaries of the trust are individuals with respect to whom services or property are to be provided at their death under contracts, as described above. 4. The only contributions to the trust are contributions by or for the benefit of the beneficiaries. The trustee makes an election to be treated as a qualified funeral trust. The trust would (except for the election described above) be treated as owned by the purchaser of the contracts (as described in requirement 1, above) under the grantor trust rules. Bankruptcy Estate. The bankruptcy trustee or debtorin-possession must file Form 501 for the estate of an individual involved in bankruptcy proceedings under Chapter 7 or 11 of Title 11 of the U.S. Federal Code if the estate has gross income for the tax year of $13,850 or more. The bankruptcy estate that is created when an individual debtor files a petition under either Chapter 7 or 11 of Title 11 of the U.S. Code is treated as a separate taxable entity. The bankruptcy estate is administered by a trustee or a debtor-in-possession. If the case is later dismissed by the bankruptcy court, the individual debtor is treated as if the bankruptcy petition had never been filed. A separate taxable entity isn't created if a partnership or corporation files a petition under any chapter of title 11 of the U.S. Code. For additional information about bankruptcy estates, see the IRS Publication 908, Bankruptcy Tax Guide. Grantor Trust Instructions. If the taxpayer is a grantor trust, in addition to checking the Grantor Trust box on page 1 of the return, the grantor trust should attach to the return the schedule which shows the activity (as they do for Federal purposes), leave the rest of the return blank except when the grantor trust generates credits or has credits assigned, allocated, or transferred to it. In this case, Schedule 5 and Schedule 5B (if applicable) should be completed. Schedule 6 should be used to transfer the credit to the owner of the grantor trust. This is necessary so that the returns can be processed and the credits flow to the proper taxpayer. Partial grantor trusts should not check the grantor trust box. Full Year Resident - If the fiduciary is a full-year resident, enter the number 1 for the residency status. Part-year/Nonresident Fiduciary - If the fiduciary is a part-year resident, enter the number 2 and the dates of part-year residency. If the fiduciary is a nonresident, enter the number 3. Lines 1 through 6 of Schedule 1 should be left blank. Instead, complete Schedule 4. Schedule 1 Line 1 Enter Adjusted total income (the amount of gross income less the itemized deductions shown on the Federal Form 1041). Line 2 Enter the net adjustment from Schedule 2. Line 3 Enter the net total from Line 1 and Line 2.

Line 4 Enter the total portion of income distributable to all beneficiaries as listed in Schedule 3. Line 5 Enter the total of Line 3 less Line 4. Line 6 Enter the exemption amount as indicated below: Trusts ..................................................$1,350 Estates................................................$2,700 Line 7a Enter the Georgia taxable income before the GA NOL. Line 7b Georgia net operating loss (NOL) carryover from previous years. Net operating losses (NOLs) for tax years 2018 and later that are applied to Georgia income cannot exceed 80% of Georgia income before NOLs. Use the schedule below to compute the net operating losses that can be used in the current year.

Line 7c Enter the total of Net taxable income (Line 7a less Line 7b). Line 8 Multiply the amount on Line 7c by 5.19%. Round to the nearest dollar. Line 9 All credits, except the credit for income tax paid to another state, should be listed on a separate Schedule 5 and the total amount from Line 13 of all Schedule 5s should be listed on Line 9b of Schedule 1. For the other states tax credit include a copy of the other state(s)' return. A return is required to be electronically filed if the return generates, claims, utilizes, or includes in any manner a series 100 tax credit claimed on Schedule 5 or 5B (see page 12). Enter the information as specified on each line of Schedule 5 and 5B. Please see the Tax Credit Summaries on the Department's website (https://dor. georgia.gov/taxes/tax-credits) for more information regarding Line 11 credits that can be sold. Line 10 Enter the tax less credits used. Line 8 less Line 9c. If the total is zero or less, enter zero. Line 11a Enter estimated tax payments, including amounts credited from a previous return, and any payments made electronically or with Form IT- 560. Line 11b Enter the total amount of tax withheld. Include the credit for nonresident withholding on distributions from pass through entities and sale of property by nonresidents. See O.C.G.A. Sections 48-7-128 and 48- 7-129. Include a copy of the G2- RP or G2-A or the closing statement showing the amount withheld. The amount withheld from the 1099 and/or G2-LP should also be included in the amount on Line 11b. All withholding statements must be included with the return or the amounts may not be allowed. For the 501X, see the 501X instructions for Lines 11c through 22. Line 11c Enter the amount of refundable tax credits. These credits must be filed electronically. 1. NOL carry forward available for current year from years before 2018 2. NOL carry forward available for current year from years 2018 and later 3. Income before GA NOL (Line 7a of Form 501 or 501X) 4. NOL from line 1 applied to current year 5. NOL from line 2 applied to current year (cannot exceed 80% of Line 3) 6. Total NOL applied - add Lines 4 and 5, also enter on Line 7b of Form 501 or 501X

Line 11d Enter the total of Lines 11a-c. Line 12 If Line 10 exceeds Line 11d, enter Line 10 less Line 11d. Line 13 If Line 11d exceeds Line 10, enter Line 11d less Line 10. Line 14 Amount from Line 13 to be credited to next year's estimated tax Line 15 See General information in this booklet for the interest calculation. Line 16 Enter the amount late payment penalty. This penalty is calculated the same as Individual Income taxpayers. Line 17 Enter the amount late filing penalty. This penalty is calculated the same as Individual Income taxpayers. Line 18 Enter the estimated tax penalty from Form 500 UET and you must include the form. If you were eligible for an estimated tax penalty exception on Form 500 UET, please check the "500 UET Exception Attached" box, enter the revised penalty and include the 500 UET with the return. If the revised penalty is zero, enter zero. Line 19 (If you owe) Add Lines 12, 15 through 18. Make check payable to Georgia Department of Revenue or pay online using the Georgia Tax Center (gtc.dor.ga.gov). Line 20 (If you are due a refund) Subtract the sum of Lines 14 thru 18 from Line 13. This is your refund. 501X General Instructions Lines 1 - 11b Refer to the 501 General Instructions in this booklet. Line 11c Enter the amount paid with the original return plus any additional payments made after it was filed. Line 11d Enter the amount of refundable tax credits for Schedule 5B. These credits must be filed electronically. Line 11e Enter the total of Lines 11a-d Line 12 Previous refund(s), if any, shown on previous return(s) Line 13 Line 11e minus Line 12. Line 14 If Line 10 exceeds Line 13, enter Line 10 less Line 13. Line 15 If Line 13 exceeds Line 10, enter Line 13 less Line 10. Line 16 Amount from Line 15 to be credited to next year's estimated tax. Line 17 See General information in this booklet for the interest calculation. Line 18 Enter the amount late payment penalty. This penalty is calculated the same as Individual Income taxpayers.

• Net operating loss carryover deducted on federal return. • For the Qualified Education Expense credit, the deduction relating to the credit. See Regulation 560-7-8-.47. • For the Land Conservation credit, the deduction relating to the credit. See Regulation 560-7-8-.50 for more information. • For the Qualified Rural Hospital Organization Expense tax credit, the deduction relating to the credit. See Regulation 560-7-8-.57 for more information. • For the Qualified Education Donation tax credit, the deduction relating to the credit. See Regulation 560-7-8-.60 for more information. • For the Qualified Foster Care Donation tax credit, the deduction relating to the credit. See regulation 560-7-8.68 for more information. • For the Qualified Law Enforcement Donation tax credit, the deduction relating to the credit. See regulation 560-7-8.69 for more information. SUBTRACTIONS: • Interest and dividends on U.S. Government bonds and other U.S. obligations. U.S. obligation income must be reduced by direct and indirect interest expense. To arrive at this reduction, the total interest expense is multiplied by a fraction, the numerator of which is the taxpayers average adjusted basis of the U.S. obligations, and the denominator of which is the average adjusted basis of all assets of the taxpayer. NOTE: Interest received from the Federal National Mortgage Association (FNMA), Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), and interest derived from repurchase agreements are not considered to be obligations of the United States and are taxable. • Federally taxable interest on "Build America Bonds" and other Georgia municipal interest for which there is a special exemption under Georgia law. "Recovery Zone Economic Development Line 19 Enter the amount late filing penalty. This penalty is calculated the same as Individual Income taxpayers. Line 20 Enter the estimated tax penalty from Form 500 UET and you must include the form. If you were eligible for an estimated tax penalty exception on Form 500 UET, please check the "500 UET Exception Attached" box on page 1, enter the revised penalty and include the 500 UET with the return. If the revised penalty is zero, enter zero. Line 21 (If you owe) Add Lines 14, 17 through 20. Make check payable to Georgia Department of Revenue or pay online using the Georgia Tax Center (gtc.dor.ga.gov). Line 22 (If you are due a refund) Subtract Lines 16 through 20 from Line 15. This is your refund. Schedule 2: Adjustments to Income Georgia taxable income of a fiduciary is its Federal adjusted total income with certain adjustments as provided in Code Section 48-7-27. List all additions and all subtractions in the appropriate sections of Schedule 2. The more common adjustments are shown. ADDITIONS: • Interest on State and Municipal bonds other than Georgia and its political subdivisions. • Any income tax claimed as a deduction on Form 1041 other than Georgia. • Fiduciary fee and other expense allocable to income exempt from Georgia tax (other than U.S. obligations).

Bonds" under Section 1400U-2 of the Internal Revenue Code or any other bond treated as a "Qualified Bond" under Section 6431(f) of the Internal Revenue Code are considered "Build America Bonds" for this purpose. • Income Tax refunds included as income on Form 1041 other than Georgia. Enter the total adjustments on the indicated line of Schedule 2 and on Line 2, Schedule 1. See Georgia Code Section 48-7-27 for additional adjustments. Schedule 3: Share of Income If there are more than 3 beneficiaries, attach a list showing the same information for each. The total of Schedule 3 must be the same as the amount on Line 4, Schedule 1. When the beneficiaries share of income is zero ($0), do not include the list of beneficiaries. Line D - Total of all beneficiaries share of income. This number must be the same as the amount on Schedule 1, Line 4 or Schedule 4, Line 12. Schedule 4: Part Y ear and Nonresident Fiduciary Instructions Part year residents and nonresidents who receive income from Georgia sources are required to file Georgia Form 501 and complete Form 501 Schedule 4 to calculate Georgia taxable income. Note: Include copies of the federal return and schedules with your Georgia 501 return. Enter the number 2 or 3 for the residency status. If 2 is entered, enter the dates of part-year residency. Lines 1 - 4, Column A List your income as if you were a Georgia resident. Lines 1 - 4, Column B List your Georgia source income. Line 5, Columns A and B Enter the total of Lines 1 - 4 in Columns A and B. Line 6, Column A List total deductions used in arriving at Adjusted Total Income from your federal Form 1041. Line 6, Column B List deductions used in arriving at Adjusted Total Income from your federal Form 1041 that relate to the Georgia source income. Line 7 , Column A List total net adjustments from Schedule 2. Line 7 , Column B List net adjustments from Schedule 2 that relate to the Georgia source income. Line 8, Columns A and B Enter Line 5 minus Line 6 plus or minus Line 7. Line 9 Divide Line 8, Column B by Line 8, Column A to calculate the ratio of Georgia source income to the total income. Line 10 Enter the exemption amount as indicated below: Trust........................................................$1,350 Estates..................................................$2,700 Line 11 Multiply Line 9 by Line 10. Line 12 Enter beneficiaries share of Georgia income from Schedule 3 (D).

Line 13 Enter Line 11 plus Line 12 Line 14 Enter Line 8, Column B less Line 13. This is your Georgia taxable income before Georgia Net Operating Loss. Enter here and on Form 501 Line 7a. Schedule 5 , Schedule 5B and Schedule 6 Credits are from the Fiduciary or from the ownership of an S Corp., LLC, LLP, or Partnership interest. If credits are claimed on Schedule 5 or 5B the return must be filed electronically. Georgia tax credits (Series 100) must be claimed on Schedule 5. For a list of tax credit codes (series 100) see page 19. Please see the Tax Credit Summaries on the Department's website (https://dor.georgia.gov/ taxes/tax-credits) regarding Line 11 credits that can be sold. Refundable credits are claimed on schedule 5B. Currently only the Timber Tax credit is refundable but is not refundable if it was purchased. If claiming any of the following credit codes, enter your SSN/FEIN and not the FEIN of the donation/nonprofit organization: • 125 - Qualified Education Expense Credit • 136 - Qualified Rural Hospital Organization Expense Credit • 140 - Qualified Education Donation Credit • 150 - Qualified Law Enforcement Donation Credit • 151 - Qualified Foster Child Donation Credit Note: These credits cannot be allocated to beneficiaries. See the Tax Credit Summaries on the Department's website (https://dor.georgia.gov/ taxes/tax-credits) for more information. Schedule 6 List the credit allocation information for each beneficiary. Net Operating Loss Application (NOL) Schedule 7: 501 Net Operating Loss Instructions - 2023 tax years and forward When submitting Schedule 7 you must include the form 501 or 501X, pages 1 and 2. What is a Net Operating Loss (NOL)? If your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). Types of Net Operating Loss (NOL): For tax years beginning on or after January 1, 2018, select the type of NOL. Normal Loss: A Normal loss can only be carried forward until exhausted. Insurance Loss (2) year: An Insurance Loss can be carried back 2 years and carried forward for 20 years or until exhausted. Farm Loss (2) Year: A Farm Loss can be carried back 2 years. A Farm Loss can be carried forward indefinitely or until exhausted.

# General Instructions

A Georgia Net Operating Loss (NOL) must be computed separately from any Federal NOL. It is possible to have a Federal NOL, but not a Georgia NOL. In computing the Georgia NOL only amounts attributable to Georgia can be used. The Schedule 7 must be completed and filed with the 501/501X return, no later than 3 years from the due date of the loss year income tax return, including any extensions which have been granted.

Net operating losses (NOLs) for tax years 2018 and later that are applied to Georgia income cannot exceed 80% of Georgia income before NOLs. Use the Schedule 7, Part I to compute the net operating losses that can be used in the following year. *Note: For taxable years beginning on or after January 1, 2023, use the Schedule 7 Net Operating Loss Application to compute the Fiduciary net operating loss. For taxable years prior to tax year 2022, use the Form 500-NOL return to compute the net operating loss. Within 90 days from the last day of the month in which this form is filed, the Commissioner of Revenue shall make a limited examination of the form and disallow without further action any form containing errors of computation not correctable or having material omissions. A decrease of tax determined for prior years will first be credited against any unpaid tax and any remaining balance will be refunded to the taxpayer without interest within the 90-day period. **Note: The Schedule 7 shall constitute a claim for credit or refund. If the commissioner should determine that the amount credited or refunded by an application is in excess of the amount properly attributable to the carryback with respect to which such amount was credited or refunded, the commissioner may assess the amount of the excess as a deficiency as if it were due to a mathematical error appearing on the face of the return. For additional Net Operating Loss information see Rules & Regulations 560-7-4-.01. What must be attached when claiming an NOL: 1. Copy of Federal return (1041). Also include Schedules C, D, E, or F where a loss is generated. 2. Copy of Federal returns (1041) for the carryback years, and any schedules that were recalculated in carryback year. 3. Copy of Georgia returns for the carryback or carryforwards years. A copy of Federal Form 1045 should be included for carryback. Be sure to attach all required forms listed above and complete all Lines of the Schedule 7 that apply. Otherwise, your application may be disallowed. Determine whether you have a Georgia NOL and its amount: Complete the Schedule 7, Net Operating Loss Application. If Line 30 is zero or more, you do not qualify for a Georgia NOL. How to calculate an NOL: Please see Schedule 7, Part I Computation Instructions. When and how to use an NOL Carry - back: The carryback period may be waived and the NOL carried forward. Election: A taxpayer is bound by the Federal election to forego the carryback period. A copy of this election should be attached to the Georgia return. If there is a Georgia NOL but no Federal NOL, the taxpayer may make an election "for Georgia purposes only" under the same rules and restrictions as the Federal election. The Schedule 7 should be attached and completed even when the carryback period is foregone. Example: A taxpayer has a large Net Operating Loss in 2017 (both Federal and Georgia). With his timely filed Federal return, he includes a statement that he elects to forgo the carryback period. He must therefore carry his Georgia (as well as his Federal) NOL forward without first carrying it back. Any portion not absorbed after 20 years is lost. Losses generated 2018 and forward can be used until exhausted, with the exception of insurance losses. Carryback an NOL to a previous year: Schedule 7, page 9 carryback schedule should be left blank when not trying to carryback. A net operating loss carryback adjustment must be filed on Schedule 7, page 9 for a fiduciary taxpayer that desires a refund of taxes afforded by carryback of a net operating loss. Do not file a 501X return for prior years to apply the carryback of an NOL.

Generally, a net operating loss must be carried back (if applicable) and forward in the procedural sequence of taxable periods provided by section 172 of the Internal Revenue Code of 1986, as defined in Code Section 48-1-2. For taxable years ending on or before December 31, 2017, generally the carryback period is 2 years (with special rules for farmers (5 years), casualty losses (3 years); specified liability loss (10 years), small business loss attributable to federally declared disasters (3 years); etc.) For losses incurred in taxable years ending after December 31, 2017, there is no carryback (with a 2 year carryback for farmers) and unlimited carryover. Insurance Loss has a 2 year carryback, with a 20 year carryforward limitation. Also, Georgia does not follow the following provisions: • Special carryback rules enacted in 2009. • Special rules relating to Gulf Opportunity Zone public utility casualty losses, I.R.C. Section 1400N(j). • 5 year carryback of NOLs attributable to Gulf Opportunity Zone losses, I.R.C. Section 1400N(k). • 5 year carryback of certain disaster losses, I.R.C. Sections 172(b)(1)(j) and 172(j). • The election to deduct public utility property losses attributable to May 4, 2007 Kansas storms and tornadoes in the fifth tax year before the year of the loss, I.R.C. Section 1400N(o). • For losses incurred in taxable years ending after 12/31/2017 Georgia follows the CARES Act federal law relating to no carryback and unlimited carryforward of net operating losses and also adopts the 2-year carryback for farming losses and the 2-year carryback and 20-year carryforward for certain insurance company net operating losses. • Georgia has adopted all of the CARES Act for taxable years beginning on or after January 1, 2019 but did not adopt the revised net operating loss provisions in the CARES Act and the modification to the Code Section 461(l) limitation in the CARES Act. How to claim an NOL: The NOL can be taken in future years or carried back to previous tax years. The NOL cannot be taken in the loss year. The loss year is the year in which the NOL occurred. Schedule 7 , Part I: Computation Instructions Line 1 Enter amount from Form 501/501X, Line 7a. Line 2 Enter Total Distributions (Charitable and Income Distributions Deductions). Line 3 Current Year Net Loss, add Line 1 and Line 2. Line 4 Enter exemptions. Enter as a positive amount from Form 501/501X Schedule 1, Line 6, for part year and nonresident filers use Schedule 4, Line 11. Line 5 Enter as a positive number any Nonbusiness Capital losses before limitation. (Federal form). Line 6 Enter total Nonbusiness capital gains ( without regard to I.R.C Section 1202 exclusion) (Federal form). Line 7 If Line 5 is more than Line 6, enter the difference; otherwise enter zero. Line 8 If Line 6 is more than Line 5, enter the difference; otherwise enter zero. Line 9 Enter Nonbusiness deductions. (Federal form). Line 10 Enter Nonbusiness income other than Capital gains. (Federal form).

Line 11 Add Line 9 and Line 10. Line 12 Excess nonbusiness deductions, Line 9 less Line 11. If less than zero, enter zero. Line 13 Excess nonbusiness income, Line 11 less Line 9. If less than zero, enter zero. Cannot exceed line 8. Line 14 Enter total business Capital losses before limitation, enter as a positive number. Line 15 Enter total business Capital gains (without regard to I.R.C Section 1202 exclusion). Line 16 Add Line 13 and Line 15. Line 17 If Line 14 is more than Line 16, enter the difference; otherwise enter zero. Line 18 Add Line 7 and Line 17. Line 19 Net Capital Loss before the $3,000 federal limitation. Enter as a positive number. Line 20 Enter I.R.C. section 1202 exclusion (50% exclusion for gain from certain small business stock). Line 21 Line 19 less Line 20. If less than zero, enter zero. Line 22 Enter your Net Capital loss after the $3,000 Federal limitation. Enter as a positive number. Line 23 Enter excess Capital losses (Line 21 less Line 22). If less than zero, enter zero. Line 24 If Line 22 is more than Line 21, enter the difference. If less than zero, enter zero. Line 25 Capital loss add back. Line 18 less Line 23. If less than zero, enter zero. Line 26 Reserved Line 27 Add Lines 4, 12, 20, 24, and 25. Line 28 Add Line 3 and Line 27. Line 29 Enter IRC Section 461(l) loss eligible to be carried forward only. Enter as a negative number. Line 30 Total Loss. If Line 28 is a negative amount, add Line 28 and Line 29. Enter this amount on Line 30 and above on the amount line for Total Loss(es) Portion. Line 28. Loss amount -39,000 Line 29. IRC Section 461(I) loss eligible to be carried forward only -7,400 Line 30. Total Losses. -46,400 If Line 28 is positive amount, and there is an amount on Line 29. Enter the amount from Line 29 on Line 30 and above on the amount line for Total Loss(es) Portion. Line 28. Loss amount 39,000 Line 29. IRC Section 461(I) loss eligible to be carried forward only -7,400 Line 30. Total Losses. -7,400 If the result is zero or more on Line 30, you do not have an NOL.

# Part II: Carryback

Computation of Overpayments *Note: The following applies to Carryback: • If the loss is being carried forward leave Part II: Carryback blank. • An Insurance Loss can be carried back 2 years. • A Farm Loss can be carried back 2 years. • When carrying back NOL apply the loss to the oldest tax year applicable first. Column (a) & (c). Return as filed or liability as last determined Enter the amounts from your original return or as previously adjusted by you or the Department of Revenue. Column (b) & (d). Liability after application Line 1 Enter Federal adjusted gross income excluding Federal NOL. Line 1 should not be reduced by the Federal or Georgia NOL. Enter amount from Form 501/501X, Line 1 for Full year, part year, and nonresident filers. Line 2 Enter the Net Adjustments from Schedule 2, Line 12. Line 3 For the earliest carryback year, in column (b) or (d) enter the NOL from page 8, Line 30 that is allowed to be carried back. Enter as a negative amount. Line 4 Line 4 Add the net total of Lines 1, 2, and 3, for Georgia adjusted gross income. Line 5 Beneficiaries' Share of Income. Schedule 3, Line D. Line 6 Line 4 less Line 5. Line 7 Enter amount from Form 501/501X, Schedule 1, Line 6 for full year residents. For a part year and nonresident filers, use Schedule 4, Line 11. Line 8 Taxable income. Line 6 less Line 7. Line 9 Take the amount from Line 8 and multiply by the applicable Georgia Tax Rate for the applicable tax year to determine your tax liability. Line 10 The credit for taxes paid to other states should be recomputed based on the new Georgia AGI and deductions. Other credits that are based on liability should be adjusted accordingly. Any credits that are not allowed and that are eligible for carryforward can be carried forward. Do not enter more than Line 9. Line 11 Tax after credits. Line 9 less Line 10. Line 12 Enter Line 11 of column (b) (d) in column (a) (c). Enter amount from Line 11 of column (b) to Line 12 of column (a). Enter amount from Line 11 of column (d) to Line 12 of column (c). Line 13 Decrease in tax. Line 11 less Line 12.

# General Information

Penalties and Interest DELINQUENT FILING OF RETURN - 5% of the tax not paid by original due date for each month or fractional part thereof - up to 25%. FAILURE TO PAY tax shown on a return by due date - 0.5% of the tax due for each month or fractional part thereof - up to 25%. Failure to pay is not due if the return is being amended due to an IRS audit, check the box at the top of Page 1. Note: Late payment and late filing penalties together cannot exceed 25% of tax not paid by the original due date. A PENALTY OF $1,000 may be assessed against an individual who files a frivolous return. NEGLIGENT underpayment of tax - 5% of the underpayment. FRAUDULENT UNDERPAYMENT - 50% thereof. FAILURE TO FILE ESTIMATED TAX - 9% per annum for the period of underpayment. Form 500 UET is available upon request and from our website for computation of under-estimated installment payments. If you were eligible for an estimated tax penalty exception on Form 500 UET, please check the "500 UET Exception Attached" box, include the revised penalty on Line 18 of the Form 501 (if the revised penalty is zero, enter zero), and include the 500 UET with the return. Interest accruing for months beginning before July 1, 2016, accrues at the rate of 12 percent annually. Interest that accrues for months beginning on or after July 1, 2016, accrues at an annual rate equal to the Federal Reserve prime rate plus 3 percent. The interest rate will be reviewed and may be adjusted in January of each subsequent calendar year. See https://dor.georgia.gov/annual-notice-interestrate-adjustment for the annual interest rate. For more information on Penalties and Interest, see: https://dor.georgia.gov/penalty-and-interest-rates. Estimated Tax O.C.G.A. § 48-7-114 requires Fiduciaries to pay estimated tax. Each Fiduciary subject to Georgia Income Tax who reasonably expects to have during the year gross income which exceeds: (1) The estate/trust exemption; plus (2) Estimated deductions; plus (3) $1,000 income not subject to withholding is required to file. However, a fiduciary shall not be required to pay estimated tax with respect to any taxable year ending before the date two years after the date of the decedent's death in the case of: 1. the estate of a decedent; or 2. a testamentary trust as defined in IRC Section 6654(l)(2)(B) WHEN AND WHERE TO FILE ESTIMATED TAX. Estimated tax payments required to be filed by persons not regarded as farmers or fishermen shall be filed on or before April 15th of the taxable year, except that if the above requirements are first met on or after April 1st, and before June 1st, the tax must be paid by June 15th; on or after June 1st and before September 1st, by September 15th; and on or after September 1st, by January 15th of the following year. If the due date falls on a weekend or holiday, the tax shall be due on the next day that is not a weekend or holiday. Fiduciaries filing on a fiscal-year basis ending after December 31st, must file on corresponding dates. The estimate coupon, Form 500 ES, should be mailed to the Department of Revenue, Processing Center, P.O. Box 740319, Atlanta, GA 30374- 0319. PAYMENT OF ESTIMATED TAX. Payment in full of your estimated tax may be made with the first required payment or in equal installments during the year on or before April 15th, June 15th, September 15th, and the following January 15th. Make your check or money order payable to "Georgia Department of Revenue." O.C.G.A. § 48-2-31 stipulates that "taxes shall be paid in lawful money of the United States free of any expense to the State of Georgia."

Tax Credits The following Credits from the Fiduciary or from the ownership of an S Corp, LLC, LLP or Partnership Interest which will be reflected on the Fiduciary's K-1 must be listed on Form 501, Schedule 5 or 5B. The entity information and credit code must be included. Additional documentation for claiming a credit is required where indicated. NOTE: Credit code numbers are subject to change annually. Current code numbers are listed below. Note: A return is required to be filed electronically if the return generates, allocates, claims, utilizes, or includes in any manner a Series 100 credit. Grantor Trust Information. If the taxpayer is a grantor trust, in addition to checking the Grantor Trust box on page 1 of the return, the grantor trust should attach to the return the schedule which shows the activity (as they do for Federal purposes), leave the rest of the return blank except when the grantor trust generates credits or has credits assigned, allocated, or transferred to it. In this case, Schedule 5 and Schedule 5B (if applicable) should be completed. Schedule 6 should be used to transfer to the owner of the grantor trust. This is necessary so that the returns can be processed and the credits flow to the proper taxpayer. Disregarded Single Member LLC Credit Instructions. If the taxpayer owns or is owned by a disregarded single member LLC, the single member LLC should be disregarded for filing purposes. All credits should be claimed on the owner's return. All tax credit forms should be filed in the name of the single member LLC but included with the owner's return. This is necessary so that the returns can be processed and the credits flow to the proper taxpayer. For additional information on the below-listed credits, please visit the Georgia Department of Revenue website at https://dor.georgia.gov/taxes/tax-credits. Code Name of Credit 102 - Employer's Credit for Approved Employee Retraining 103 - Employer's Jobs Tax Credit 104 - Employer's Credit for Purchasing Child Care Property 105 - Employer's Credit for Providing or Sponsoring Childcare for Employees 106 - Manufacturer's Investment Tax Credit 107 - Optional Investment Tax Credit 109 - Low Income Housing Credit 111 - Business Enterprise Vehicle Credit 112 - Research Tax Credit 113 - Headquarters Tax Credit 114 - Port Activity Tax Credit 115 - Bank Tax Credit 118 - New Facilities Tax Credit 119 - Electric Vehicle Charger Credit 120 - New Manufacturing Facilities Property Credit

121 - Historic Rehabilitation Credit for Historic Homes 122 - Film Tax Credit (Use code 133 if the credit is for a Qualified Interactive Entertainment Production Company) 124 - Land Conservation Credit 125 - Qualified Education Expense Credit 126 - Seed-Capital Fund Credit 128 - Wood Residual Credit 129 - Qualified Health Insurance Expense Credit 130 - Quality Jobs Tax Credit 131 - Alternate Port Activity Tax Credit 132 - Qualified Investor Tax Credit 133 - Film Tax Credit for a Qualified Interactive Entertainment Production Company 135 - Historic Rehabilitation Tax Credit for any Other Certified Structures (not a historic home) 136 - Qualified Rural Hospital Organization Expense Tax Credit 138 - Postproduction Film Tax Credit 139 - Small Production Film Tax Credit 140 - Qualified Education Donation Tax Credit 141 - Musical Tax Credit 142 - Rural Zone Tax Credits 143 - Agribusiness and Rural Jobs Tax Credit 144 - Post-Consumer Waste Materials Tax Credit 145 - Timber Tax Credit 146 - Railroad Track Maintenance Tax Credit 147 - Personal Protective Equipment Manufacturer Jobs Tax Credit 148 - Life Sciences Manufacturing Job Tax Credit 149 - Historic Rehabilitation Tax Credit for Historic Homes and Other Structures Earning $300K or less 150 - Qualified Law Enforcement Donation Tax Credit 151 - Qualified Foster Child Donation Tax Credit 152 - Historic Rehabilitation Credit for Historic Homes 153 - Historic Rehabilitation Credit for Other Certified Structures 155 - Timber Tax Credit 2025 156 - Converted Vehicle Tax Credit 157 - Employer's Jobs Tax Credit 2025 158 - Port Activity Job Tax Credit 2025 159 - Port Activity Manufacturing Investment Tax Credit 2025 160 - Life Sciences Manufacturing Job Tax Credit 2025 161 - Rural Zone Tax Credit 2025

Filing Checklist √ Have you considered filing your return electronically? It is safe and convenient to file electronically. For more information, visit dor.georgia.gov/why-should-i-file-electronically √ Checked that the Social Security Number(s) and/or Federal Employer Identification Number (FEIN) on the return are accurate and complete √ Reviewed each line for accuracy and verified calculations • Amounts are rounded to the nearest dollar √ Correctly calculated the tax amount using the applicable tax rate √ Signed and dated the return • Note: Anyone paid to prepare the return must also sign the return √ Completed and included all schedules • Note: Schedules 5/5B and 6 must be filed electronically √ Mailed the return to the correct address Dos and Don'ts For Filing Paper ReturnsDos and Don'ts For Filing Paper Returns Do • Do include your 1099(s), G2-RP(s), G2-LP(s), G2-A(s) and other supporting income statements • Paper Filing: Do send your return, check/money order, and 525-TV voucher to the address on the return • Do use GTC or the Form IT-560 to make an extension payment • Do make your check or money order payable to the Georgia Department of Revenue Don't x Do not include cents on your return. Round to the nearest dollar. x Do not staple your 1099(s), G2-RP(s), G2-LP(s), G2-A(s) and other forms to your return x Do not use the Form 501 to correct a previously filed return - Use Form 501X Note: Sending your return by certified mail delays the processing of your return and your refund.

# STATE OF GEORGIA DEPARTMENT OF REVENUE TAXPAYER SERVICES DIVISION

2595 CENTURY PKWY. NE ATLANTA, GEORGIA 30345-3173