Compilation of Rules and Regulations of the State of Georgia
Department 560 - RULES OF DEPARTMENT OF REVENUE
Chapter 560-7 - INCOME TAX DIVISION
Subject 560-7-8 - RETURNS AND COLLECTIONS
Rule 560-7-8-.43 - Qualified Caregiving Expense Credit

Universal Citation: GA Rules and Regs r 560-7-8-.43

Current through Rules and Regulations filed through September 23, 2024

(1) Definitions.

(a) Qualified Caregiving Expenses. For purposes of this rule, Qualified Caregiving Expenses are defined as payments by the taxpayer for home health agency services, personal care services, personal care attendant services, homemaker services, adult day care, respite care, or health care equipment and supplies which equipment and supplies have been determined to be medically necessary by a physician. These services, care, or equipment and supplies must be:
1. Provided to a qualifying family member; and

2. Purchased or obtained from an organization or individual not related to the taxpayer or the qualifying family member.

(b) Qualifying Family Member. For purposes of this rule, qualifying family member is defined as the taxpayer or an individual who is related to the taxpayer by blood, marriage, or adoption and who is at least 62 years of age; or has been determined to be disabled by the Social Security Administration. The qualifying family member does not have to be a Georgia resident and does not have to be a dependent of the taxpayer. Additionally, the taxpayer does not have to be a Georgia resident.

(c) An Individual Who is Related to the Taxpayer by Marriage. For purposes of this rule, an individual who is related to the taxpayer by marriage is defined as follows:
1. Your spouse.

2. Parents and children of your spouse.

3. If your previous spouse is deceased, parents and children of your deceased spouse.

(2) Amount of the credit. A taxpayer shall be allowed a credit against the tax imposed by O.C.G.A. § 48-7-20 for qualified caregiving expenses in an amount not to exceed 10 percent of the total amount expended for qualified caregiving expenses.

(3) Limitations.

(a) No taxpayer shall be entitled to such credit with respect to the same qualified caregiving expenses claimed by another taxpayer.

(b) In no event shall the amount of the tax credit exceed $150.00 or the taxpayer's income tax liability, whichever is less. Any unused tax credit shall not be allowed to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax credit shall be allowed the taxpayer against prior years' tax liability.

(c) No credit shall be allowed under this Code section with respect to any qualified caregiving expenses either deducted or subtracted by the taxpayer in arriving at Georgia taxable net income.
1. Amounts that are included as medical itemized deductions must be treated as follows. The ratio of the medical itemized deductions that are allowed after the Federal percentage limitation to the total medical itemized deductions before the Federal percentage limitation should be applied to the qualified caregiving expenses that are included in the medical itemized deductions before the Federal percentage limitation to determine the portion of expenses that are not allowed under this subparagraph. If the taxpayer does not have enough medical itemized deductions to exceed the Federal percentage limitation, no adjustment is necessary under subparagraph (3)(c).

2. No adjustment is necessary under subparagraph (3)(c) for qualified caregiving expenses that are used to compute Federal credits such as the child and dependent care credit provided the qualified caregiving expenses otherwise qualify.

(d) No credit shall be allowed under this Code section with respect to any qualified caregiving expenses for which amounts were excluded from Georgia net taxable income. For example, medical expenses reimbursed by an insurance company would not be eligible for this credit.

O.C.G.A. Secs. 48-2-12, 48-7-29.2.

Disclaimer: These regulations may not be the most recent version. Georgia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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