FINANCE
Tax refund of up to $5,000: which state, who qualifies and how to request it
Some residents of Georgia may be eligible for a refund of up to $5,000 for donations to this specific type of organization.
The United States has various refundable and non-refundable tax credits that can be claimed on state and federal income tax returns. In Georgia, the government offers a refundable credit of up to $5,000 to taxpayers who donate to certain organizations.
Who qualifies for the $5,000 credit in Georgia?
To empower young adults transitioning out of the foster care system, Georgia offers a refundable credit of up to $5,000 for taxpayers who donate to qualified foster child support organizations. This support, made possible by the Fostering Success Act (FSA), part of Bill 424, can make a significant difference in the lives of these children.
In other words, the credit is intended for taxpayers donating part of their income to the organizations above. According to government information, the refund will depend on the amount donated and the marital status that appears on the taxpayer’s tax return. Individuals filing as singles can receive a refund of up to $2,500, while couples filing their return jointly are eligible for a refundable credit of up to $5,000.
How can you request your refund
If you are interested in making a difference in the lives of young adults leaving the foster care system and receiving a credit of up to $5,000 for doing so, the application process is straightforward. Simply inform the Georgia Department of Revenue of the amount of income you wish to donate. The procedure can be completed online through the form IT-QFCD-TP1. “The taxpayer must electronically submit Form IT-QFCD-TP1 through the Georgia Tax Center to request preapproval of the qualified foster child donation credit from the Department of Revenue,” explains the state’s webpage dedicated to the law.
Once the request is submitted, the Department must approve the amount you offer. The response takes around 30 days after the request is issued. If your donation is approved, you must send the money to the organization within a maximum of 60 days after approval or before December 31 of the current year, whichever comes first.
For more information, visit the Qualified Foster Child Gift Credit website.