GEORGIA TAX CREDITS

Georgia offers various tax credit opportunities that enable you to channel your state income tax liability as a direct contribution to numerous organizations and foundations serving state residents. Specifically, these credits allow you to keep your funds local by supporting a local organization or directing them to an area with the greatest need. Examples include the Qualified Education Expense Tax Credits, Qualified Foster Child Donation Credit, Qualified Law Enforcement Donation Credit, and Rural Hospital Organization Expense Credit, which are accessible to both individual and business taxpayers.  Notably, you still pay the same amount. Instead of paying the Georgia Department of Revenue your tax liability say $1,000, you contribute $1,000 to a qualified fund. 

Below are links to some local credit applications.

QCD (QUALIFIED CHARITABLE DISTRIBUTION)

If you are required to take RMDs (Required Minimum Distributions) from your IRAs (over 70 ½ years of age).  This is one of the most efficient ways to use tax-deferred money in retirement.  It lets you reduce IRA balances over time, which helps manage future RMDs and taxes for you and potentially your heirs.

Instead of taking an RMD, paying tax, and then writing a check to a charity, a QCD lets you give the money pre-tax and it still satisfies your RMD.

QCDs are limited to $105,000 and must be made directly from the IRA to a qualified charity (donor-advised funds,  private foundations & supporting organizations are ineligible).

“BUNCHING” DONATIONS INTO A SINGLE YEAR

For taxpayers that take the standard deduction, bunching 2-3 years of donations into one tax year to push itemized deductions over the standard deduction.  Contributing to a Donor Advised Fund will allow you to take the deduction in one year and distribute that donation over several years.

DONATING APPRECIATED STOCK

Allows you to deduct the fair market value of the stock and avoid the capital gain tax that would be paid of sold.  Limited to 30% of AGI to public charities.

2025 & 2026 TAX CHANGES IMPROVING CHARITABLE DEDUCTION OPPORTUNITIES

The State & Local tax deduction is increased to $40,000 from $10,000 thru 2029.  This will allow more individual taxpayers to itemize deductions allowing additional deductions for charitable contributions.  Cash gifts to public charities are deductible up to 60% of AGI.

Starting with tax years after 2025, a new permanent rule allows non-itemizers to deduct up to $1,000 ($2,000 for joint filers) for qualified cash charitable contributions.