How to Fill Out and File Georgia Form G2-A: Nonresident Withholding

Georgia Form G2-A is the withholding statement a pass-through entity uses to report the 4 percent Georgia tax it withheld on a nonresident member’s share of Georgia-sourced income. Partnerships, S corporations, and LLCs that do business or own property in Georgia file it with the Department of Revenue and give a copy to each nonresident partner, shareholder, or member so that person can claim credit for the tax already paid.¹

What the Form Reports and Who Files It

Under O.C.G.A. § 48-7-129, a pass-through entity must withhold 4 percent of each nonresident member’s share of taxable income allocated or apportioned to Georgia, whether or not that income is actually distributed. A nonresident member is a partner, shareholder, or LLC member whose principal residence or place of business is outside Georgia. The entity and its members are jointly and severally liable for the tax, so both sides have reason to make sure the withholding is calculated and reported correctly.¹

One boundary worth stating up front: G2-A has nothing to do with a nonresident selling Georgia real estate. That transaction uses Form G-2RP under O.C.G.A. § 48-7-128. G2-A applies only to pass-through entity income.

When Withholding Is Not Required

Before filling out a G2-A for a member, check whether that member falls within one of the statutory exceptions in § 48-7-129(b). A nonresident member can certify eligibility using the NRW-Exemption form, which relieves the entity of the duty to withhold on that member’s share.² Withholding is not required when:

The entity files a composite Georgia return on behalf of its nonresident members. This is the most commonly used route: one return covers everyone and the entity pays the tax on their behalf.
The member’s aggregate share of Georgia-sourced taxable income for the year is less than $1,000.
The entity is a publicly traded partnership as defined in Internal Revenue Code § 7704.
The commissioner has granted written approval of an undue-hardship petition. The entity cannot make this call on its own.
The entity is a federally chartered S corporation that does not qualify for pass-through treatment in Georgia and instead pays corporate income tax.
The member meets another exception set out in the commissioner’s regulations.

Keep any NRW-Exemption certifications in your files. If a claimed exemption turns out not to apply, the entity remains on the hook for the amount it failed to withhold.¹

Completing the Form

Download the current version of Form G2-A from the Department of Revenue’s website.³ The form is short. It collects identifying information for the entity and the member, plus the two dollar figures at the heart of the filing.

Entity information:

Box 1: the entity’s Georgia nonresident withholding number. This is the number the Department of Revenue assigns for withholding, not the general state tax ID.
Box 2: the entity’s Federal Employer Identification Number.
Box 3: the legal name and mailing address of the entity making the distribution.

The remaining fields cover the member: name, taxpayer identification number (Social Security Number for an individual, FEIN for an entity), the member’s share of Georgia-sourced taxable income, and 4 percent of that figure as tax withheld.¹

Check the income figure carefully. The 4 percent applies to the member’s allocable share after Georgia’s apportionment rules, not the total distributive share. If the entity operates in more than one state, only the Georgia-apportioned portion of the member’s share triggers withholding.

When To File and Furnish the Form

The entity must remit the withheld tax and file the return by the due date of the entity’s own Georgia income tax return, without regard to any filing extension. An extension to file does not extend the deadline to pay. For calendar-year partnerships and S corporations, that puts the withholding due date on or before March 15.¹

Each nonresident member also needs a copy. Furnish the completed G2-A (or an equivalent written statement) by the earlier of the date the entity actually files its income tax return or that return’s due date. Members rely on the form to claim credit on their own Georgia nonresident returns.

Penalties for Failing To Withhold

An entity that fails to withhold and pay the required amount faces a penalty of 25 percent of the tax it should have withheld, in addition to the underlying tax.¹ Because liability is joint and several, the Department of Revenue can pursue the entity, the member, or both. A nonresident member who never received a G2-A still owes the tax.

How Nonresident Members Use the Form

For the recipient, G2-A works much like a W-2 or 1099. It documents Georgia income attributed to the member and the tax already paid on their behalf. The member attaches it to their Georgia nonresident income tax return and claims credit for the amount withheld. If the withholding exceeds the actual tax owed, the difference comes back as a refund. If it falls short, the member owes the balance.

A member who thinks the amount is wrong should go back to the entity. The entity calculated the Georgia-sourced income and applied the 4 percent rate, so any correction begins there and moves through a corrected G2-A filed with the Department of Revenue and furnished to the member before the member files.

1
Justia. Georgia Code 48-7-129 – Withholding Tax on Distributions to Nonresident Members
2
Georgia Department of Revenue. NRW-Exemption
3
Georgia Department of Revenue. G2-A