Georgia does not issue its own version of the Schedule K-1. The Department of Revenue confirms this directly in its S Corporation FAQ.1Department of Revenue. S Corporations – FAQ The Georgia K-1 equivalent is really a combination of two things: schedules inside the entity’s Georgia return (Form 700 for partnerships, Form 600S for S corporations, Form 501 for estates and trusts) and a supplemental statement the entity or its accountant prepares to hand you alongside your federal K-1. You use those Georgia figures, together with your federal K-1, to complete your individual Form 500.
Where Your Georgia Numbers Actually Come From
The entity reports each owner’s Georgia-sourced income on a schedule within its state return. On Form 700, that’s Schedule 4 (“Income to Partners”), which lists each partner’s name, ID number, profit-and-loss sharing percentage, and Georgia-sourced income.2Georgia Department of Revenue. 2025 Georgia Form 700 Partnership Tax Return Credits the entity generated and passes through appear on a separate schedule: Schedule 11 on Form 700, Schedule 12 on Form 600S.
Owners don’t read those schedules directly. Instead, most entities give each owner a supplemental statement with the Georgia-specific numbers pulled out. This is not a DOR-prescribed form, has no official name, and its quality depends entirely on the tax preparer. If you’re a partner or shareholder and haven’t received Georgia allocation information, ask the entity or its accountant for it. Without it, you can’t complete Form 500 correctly.
Form 700 works as an information return when the entity has not elected to pay tax at the entity level, so the partners pay Georgia tax individually on their share.3Department of Revenue. Taxes for Partnerships
How the Georgia Figures Differ From Your Federal K-1
Georgia starts from federal adjusted gross income, but it doesn’t accept the federal K-1 numbers as-is. Two categories of adjustment matter for pass-through owners.
Georgia modifications. Interest from bonds issued by other states or municipalities outside Georgia (including mutual fund dividends derived from those bonds) must be added back on your Georgia return even though it was excluded federally. Interest from direct U.S. government obligations like Treasury bonds and notes goes the other direction: taxable federally, exempt in Georgia, so you subtract it, reduced by any interest expense attributable to producing that income.4Department of Revenue. General Business Tax Questions – FAQ
Separately stated expenses. Section 179 deductions, charitable contributions, and investment expenses are not deducted when calculating the entity’s Georgia net income. The portion attributable to Georgia that was allowed on your federal return can instead be subtracted on your own Georgia return.5Department of Revenue. Partnerships – FAQ The entity should tell you which expenses were excluded from its Georgia calculation so you know what to claim individually.
You don’t need to apportion income yourself. When a flow-through entity operates in and outside Georgia, it applies Georgia’s single-factor gross-receipts formula on its own return.6Justia Law. Georgia Code 48-7-31 – Taxation of Corporations The Georgia-sourced share you receive already reflects that calculation.
What Nonresident Owners Receive Instead
If you don’t live in Georgia but own a share of a Georgia flow-through entity, one of three things happens, and each changes what paperwork you get.
Nonresident Withholding (Form G-2A)
Georgia requires the entity to withhold 4% of each nonresident owner’s share of Georgia taxable income and remit it to the state.7Justia Law. Georgia Code 48-7-129 – Withholding Tax on Distributions to Nonresident Members of Partnerships, Subchapter S Corporations, and Limited Liability Companies The entity reports that withholding to you on Form G-2A, and you claim the amount as estimated tax when you file your Form 500.8Department of Revenue. G2-A If withholding exceeded your actual Georgia liability, the excess refunds back.
The entity does not have to withhold if your share of Georgia taxable income is less than $1,000, if a composite return is filed on your behalf, if the entity is a publicly traded partnership, or if the entity elected the Georgia pass-through entity tax.7Justia Law. Georgia Code 48-7-129 – Withholding Tax on Distributions to Nonresident Members of Partnerships, Subchapter S Corporations, and Limited Liability Companies
Composite Return (Form IT-CR)
The entity can instead file Form IT-CR and pay Georgia tax on behalf of some or all of its nonresident owners.9Legal Information Institute. Georgia Comp. R. and Regs. R. 560-7-8-.34 – Withholding on Nonresident Members of Partnerships, S Corporations, and Limited Liability Companies; Composite Return Alternative Nonresidents included on a composite return generally do not need to file their own Form 500. The trade-off: composite returns don’t allow itemized deductions or credits beyond what the entity can claim, so owners with meaningful Georgia deductions may end up better off filing individually. Your supplemental statement should say whether withholding or a composite return applies to you.
PTET Election
Under HB 149, a qualifying pass-through entity can elect to pay Georgia income tax at the entity level. When that happens, the entity should not file a composite return for nonresident owners, and the standard 4% withholding does not apply either.7Justia Law. Georgia Code 48-7-129 – Withholding Tax on Distributions to Nonresident Members of Partnerships, Subchapter S Corporations, and Limited Liability Companies If you were expecting a G-2A and don’t receive one, the PTET election is a likely reason.
If Your Entity Elected the Georgia PTET
The election was created as a workaround for the federal $10,000 cap on state and local tax deductions: when the entity pays the tax, it becomes a business expense rather than an individual state tax deduction. The election is binding on all owners.
Reporting on your Form 500 changes. Start from federal adjusted gross income, then subtract your share of entity income that was already taxed at the Georgia entity level on Schedule 1, Line 12, using description code “PTEDED.” If the entity had a loss, add your share of the apportioned loss on Schedule 1, Line 5 with code “PTEADD.”10Department of Revenue. HB 149 Pass-Through Entity Tax FAQ You cannot claim a credit on your individual Georgia return for tax the entity paid to Georgia on your behalf under the election.
Putting the Numbers on Form 500
Georgia’s individual income tax is currently a flat 5.19%, and the rate has been declining in recent years.11Department of Revenue. Important Tax Updates The workflow for a Form 500 with pass-through income is straightforward once you have the entity’s statement in hand.12Department of Revenue. 500 Individual Income Tax Return
- Report your full federal adjusted gross income at the top of Form 500.
- On Schedule 1, apply the additions and subtractions the entity’s supplemental statement identifies (non-Georgia municipal bond interest added back, U.S. obligation interest subtracted, separately stated expenses attributable to Georgia subtracted, PTET adjustments if applicable).
- Claim any flow-through Georgia credits on the appropriate credit lines.
- Claim withholding shown on any G-2A as a tax payment.
If the supplemental statement is unclear about which amounts are Georgia modifications versus federal figures, or doesn’t say whether withholding or a composite return applies, ask before you file. When the numbers on your Form 500 don’t reconcile to what the entity reported on Form 700 or 600S, the DOR will notice.
When the Entity’s Return Runs Late
Entity returns are due before individual returns, so in theory your Georgia allocation should reach you in time. In practice, entities often file on extension, and your information arrives late.
You can take a six-month extension for your own Georgia return. If you already have a federal extension via Form 4868, Georgia extends your state deadline automatically; attach a copy of the federal extension or IRS confirmation to your Georgia return when you file.13Department of Revenue. Requesting an Extension For a Georgia-only extension, file Form IT-303 before the original due date.
The extension gives you more time to file, not more time to pay. If you expect to owe Georgia tax on your pass-through income, estimate and pay the amount by the original due date using Form IT-560 to avoid late-payment penalties and interest.13Department of Revenue. Requesting an Extension Prior-year Georgia pass-through income is a reasonable baseline when you don’t yet have final numbers.