Fillable Form 501 - Fiduciary Income Tax Return

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SCHEDULE 3

ADJUSTMENTS TO INCOME

FORM 501

TAXPAYER’S FEIN

ADDITIONS:

Municipal bond interest - other states ........................................................

Income tax deduction other than Georgia .................................................

Expense allocable to exempt income (other than US obligations) ...............

TOTAL ADDITIONS ...................................................................................

SUBTRACTIONS:

Interest - U.S. Government Bonds

(must be reduced by direct and indirect interest expense) .

Income Tax Refund other than Georgia .......................................................

TOTAL SUBTRACTIONS ............................................................................................................

NET ADJUSTMENT: Total additions less total subtractions.

(Enter also on Line 2, Schedule 1)

ADDITIONS: Interest on State and Municipal bonds other than Georgia and its political

Georgia has adopted most of the provisions of all federal tax acts (as they relate to

subdivisions. Any income tax claimed as a deduction on Form 1041 other than

the computation of Federal taxable income) that were enacted on or before January

Georgia. Fiduciary fee and other expense allocable to income exempt from Georgia

1, 2010. Please see Page 3 for more information.

tax (other than U.S. obligations).

Every resident and nonresident fiduciary having income from sources within Georgia

SUBTRACTIONS: Interest and dividends on U.S. Government bonds and other U.S.

or managing funds or property for the benefit of a resident of this state is required to

obligations. U.S. obligation income must be reduced by direct and indirect interest

file a Georgia income tax return on Form 501.

expense. To arrive at this reduction, the total interest expense is multiplied by a

fraction, the numerator of which is the taxpayers average adjusted basis of the U.S.

Returns are required to be filed by the 15th day of the 4th month following the close

obligations, and the denominator of which is the average adjusted basis of all assets

of the taxable year.

of the taxpayer. NOTE: Interest received from the Federal National Mortgage

The Georgia Code provides penalties for failure to comply with its provisions and for

Association (FNMA), Government National Mortgage Association (GNMA), Federal

interest on late payments of tax and deficiencies.

Home Loan Mortgage Corporation (FHLMC), and interest derived from repurchase

SPECIFIC INSTRUCTIONS

agreements are not considered to be obligations of the United States and are taxable.

Schedule 1

Federally taxable interest on “Build America Bonds” and other Georgia municipal

Enter on Line 1 the amount of gross income less the itemized deductions shown on the

interest for which there is a special exemption under Georgia law. “ Recovery Zone

Federal Form 1041.

Economic Development Bonds” under Section 1400U-2 of the Internal Revenue Code

Enter on Line 2 the net adjustment from Schedule 3.

or any other bond treated as a “Qualified Bond” under Section 6431(f) of the Internal

Enter on Line 4 the total portion of income distributable to all beneficiaries as listed in

Revenue code are considered “Build America Bonds” for this purpose.

Schedule 2.

Income Tax refunds included as income on Form 1041 other than Georgia. Enter the

Enter on Line 6 the exemption: Trusts $1,350, Estates $2,700.

total adjustments on the indicated line of Schedule 3 and on Line 2, Schedule 1.

Compute the total income tax on the amount shown on Line 7 from the following tax

GENERAL INFORMATION

rate schedule, entering the total tax due on Line 8.

PENALTIES AND INTEREST

If the amount

But Not

Amount of

DELINQUENT FILING OF RETURN - 5% of the tax not paid by original due date

on Line 7 is

Over

Tax is

Excess

for each month or fractional part thereof - up to 25%.

r e

FAILURE TO PAY tax shown on a return by due date - 1/2 of 1% of the tax due for each

...............................

$ 750 .........................

1%........................

month or fractional part thereof - up to 25%.

$ 750 ...................

$ 2250 ......................... $

7.50+2%. ............ $ 750

Note: Late payment and late filing penalties together cannot exceed 25% of tax

$ 2250 .................

$ 3750 ........................ $ 37.50+3% ............. $ 2250

not paid by original due dates.

$ 3750 ..................

$ 5250 ........................ $ 82.50+4%.............. $ 3750

A PENALTY OF $1,000 may be assessed against an individual who files a frivolous

$ 5250 ..................

$ 7000 ........................ $ 142.50+5%.............. $ 5250

return.

$ 7000 ............................................................$ 230.00+6%.............. $ 7000

NEGLIGENT underpayment of tax - 5% of the underpayment.

Line 9

FRAUDULENT UNDERPAYMENT - 50% thereof.

A credit is allowed on Line 9 for income tax paid to other States. A copy of the other

FAILURE TO FILE ESTIMATED TAX - 9% per annum for the period of underpayment.

state’(s) return must be attached.

Form 500UET is available upon request for computation of underestimated installment

For information about business tax credits, see our website. Submit a schedule for the

payments.

total credit claimed. The amount on the schedule must equal the amount claimed on

INTEREST is computed at 12% per year on any unpaid tax from the date due until paid.

Line 9.

An extension of time for filing does not relieve late payment penalty or interest.

Line 11

ESTIMATED TAX

Credit for nonresident withholding on distributions from pass through entities and sale

Code Section 48-7-114 requires Fiduciaries to pay estimated tax. Each Fiduciary

of property by nonresidents. See O.C.G.A. Sections 48-7-128 and 48-7-129. Attach a

subject to Georgia Income Tax who reasonably expects to have during the year gross

copy of G 2RP or G 2A or the closing statement showing the amount withheld.

income which exceeds: (1) The personal exemption; plus (2) Estimated deductions;

The amount withheld from a G-2LP should also be put on line 11.

plus (3) $1,000 income not subject to withholding is required to file.

WHEN AND WHERE TO FILE ESTIMATED TAX. Estimated tax payments required to

Schedule 2

be filed by persons not regarded as farmers or fishermen shall be filed on or before

Complete Schedule 2 to reflect for each beneficiary on: Line 1, full name; Line 2

April 15th of the taxable year, except that if the above requirements are first met on

number and street; Line 3, city and state of residence; and, Line 4, identification

or after April 1st, and before June 1st, the tax must be paid by June 15th; on or after

number. State the total amount of income distributable to each. If there are more than

June 1st and before September 1st, by September 15th; and on or after September

two beneficiaries, attach a list showing the same information for each.

1st, by January 15th of the following year. Fiduciaries filing on a fiscal-year basis

The total of Schedule 2 must be the same as the amount on Line 4, Schedule 1.

ending after December 31st, must file on corresponding dates.

Schedule 3

The estimate coupon, Form 500ES, should be mailed to the Department of Revenue,

Georgia taxable income of a fiduciary is its Federal income with certain adjustments as

Processing Center, P.O. Box 740319, Atlanta, GA 30374-0319.

provided in Code Section 48-7-27. List all additions and all subtractions in the appropriate

PAYMENT OF ESTIMATED TAX FOR 2011. Payment in full of your estimated tax may

sections of Schedule 3. The more common adjustments are shown.

be made with the first required payment or in equal installments during this year on or

before April 15th, June 15th, September 15th, and the following January 15th. Make

your check or money order payable to “Georgia Department of Revenue.”

Georgia Public Revenue Code Section 48-2-31 stipulates that “taxes shall be paid

in lawful

money of the United States free of any expense to the State of Georgia.”

Page 2

Form 501 - Fiduciary Income Tax Return - 2011 Page 2

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