Georgia law allows certain pass-through entities to make an election to pay tax at the entity level. If the S corporation or Partnership makes this election, they are then called an "Electing Pass-Through Entity." Members of an Electing Pass-Through Entity are eligible for a non-refundable credit on their individual return.

The election must be filed no later than the due date or extended due date of the return. The election can be made annually and is not revocable once made for that tax year.

1065

Indicate that the election is being made by checking Partnership elects to pay the tax at the entity level on GA > screen 1.

1120-S

Indicate that the election is being made by checking S Corporation elects to pay the tax at the entity level on GA > screen 600S.

e-Filing

e-Filing through Drake Tax is available.

1040

Enter the taxpayer's allocable share of income that was taxed at the entity level in the individual return on GA screen 3 on the line Allocable share of income that was taxed at the entity level. The subtraction flows to GA 500, page 6, Schedule 1, line 12 with the literal PTEDED.

Enter the taxpayer's allocable share of loss that was apportioned and allocated at the entity level in the individual return on GA screen 2 on the line Allocable share of loss that was apportioned and allocated the entity level. The addition flows to GA 500, page 6, Schedule 1, line 5 with the literal PTEADD.

See the instructions for details.