What Is the Dependent Allowance for G-4 in Georgia?

The dependent allowance for G-4 in Georgia is a key component of the state’s income tax withholding system, allowing employees to reduce the amount of tax withheld from their wages based on the number of dependents they claim. As of 2024, each dependent allowance is valued at $4,000 and is calculated using Georgia’s Employee’s Withholding Allowance Certificate (Form G-4). This form helps employers determine how much state income tax to withhold from an employee’s paycheck, ensuring that employees neither overpay nor underpay their taxes throughout the year.

Claiming dependent allowances on Form G-4 is especially beneficial for individuals with children or other qualifying dependents, as it directly reduces taxable income. The allowance aligns with Georgia’s updated tax laws, which emphasize simplicity and fairness by replacing personal deductions with higher standard deductions and dependent exemptions. By correctly completing Form G-4, employees can ensure that their tax withholding reflects their financial situation accurately, avoiding surprises during tax season.

How Does the Dependent Allowance Work?

The dependent allowance is calculated by multiplying the number of dependents claimed by $4,000. This amount is then subtracted from your gross annual wages when determining your taxable income for state withholding purposes. For example:

• If you have two dependents, your total dependent allowance would be $8,000 ($4,000 x 2).
• This $8,000 is deducted from your adjusted gross wages before applying Georgia’s flat tax rate of 5.39%.

The dependent allowance applies to qualifying dependents as defined by the Internal Revenue Code (IRC). Notably, in Georgia, an unborn child with a detectable heartbeat also qualifies as a dependent minor under state law.

How to Claim Dependent Allowances on Form G-4?

To claim dependent allowances in Georgia, follow these steps:

1. Obtain Form G-4: Download the form from the Georgia Department of Revenue website or request it from your employer.
2. Complete Personal Information: Enter your full name, Social Security Number (SSN), and address in Boxes 1a through 2b.
3. Select Marital Status: Choose your marital status (e.g., single, married filing jointly) in Line 3.
4. Enter Dependent Allowances: In Line 4, write the number of dependents you are claiming.
5. Calculate Additional Allowances (if applicable): Use the worksheet provided on Form G-4 to calculate any additional allowances for deductions and enter this number on Line 5.
6. Submit to Your Employer: Once completed, sign and date the form and provide it to your employer.

Note: If you claim more than 14 allowances or exempt status, your employer must submit the form to the Georgia Department of Revenue for approval.

Recent Updates to Dependent Allowances in Georgia?

As of January 1, 2024:

• The value of each dependent allowance increased from $3,000 to $4,000 under HB 1021.
• The flat tax rate was reduced from 5.49% to 5.39%, further lowering overall tax liability for employees.

These changes reflect Georgia’s efforts to simplify its tax code while providing meaningful relief to families.

Benefits of Claiming Dependent Allowances

1. Lower Withholding Amounts: Claiming dependents reduces taxable wages, meaning less state income tax is withheld from each paycheck.
2. Financial Flexibility: More take-home pay allows employees to manage household expenses more effectively throughout the year.
3. Tax Compliance: Properly completing Form G-4 ensures accurate withholding and minimizes the risk of owing taxes when filing returns.

Examples of Dependent Allowance Calculations

Example 1: Single Parent with Two Dependents

• Gross Annual Wages: $50,000
• Dependent Allowance: $8,000 ($4,000 x 2)
• Taxable Income: $50,000 – $8,000 = $42,000
• State Tax Withholding: $42,000 x 5.39% = $2,265.80 annually

Example 2: Married Filing Jointly with Three Dependents

• Gross Annual Wages: $80,000
• Dependent Allowance: $12,000 ($4,000 x 3)
• Taxable Income: $80,000 – $12,000 = $68,000
• State Tax Withholding: $68,000 x 5.39% = $3,665.20 annually

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