If this tax season does not get more confusing. Georgia, South Carolina and a number of other states have not adopted legislation to conform with Federal Law, specifically the American Taxpayer Relief Act passed on January 2, 2013.
Georgia & South Carolina have a conformity date of January 1, 2012 and therefore do not conform to the American Taxpayer Relief Act signed January 2, 2013. Consequently, when completing your 2012 State tax return you will need to add back the following federal adjustments.
- Tuition and fees
- Educator expenses
- Distributions from IRAs for charitable purposes
- 50% accelerated bonus depreciation
- Section 179 expense increases
Also, the following itemized deductions are subtracted from federal Schedule A deductions:
- State and local sales tax
- Mortgage insurance premiums
If Georgia or South Carolina enact subsequent legislation to retroactively conform to Federal Law you may need to amend your return. We will let you know if there are any developments in this area.
If you have any questions regarding the implications of conformity laws on your specific tax situation, please do not hesitate to contact us.