The state of Georgia allows taxpayers to take up to a $150 Driver Education tax credit. This credit can be taken for the amount paid for a dependent minor child to successfully complete a driver’s education course at a private driver training school licensed by the Department of Public Safety. A private driver training school is one that primarily engages in offering driving instruction.
The amount of the credit is $150 or the actual amount paid for the course, whichever is less. It is important to know that private driver training schools do not include schools owned or operated by local, state, or federal governments. Courses offered at private and public high schools are also disqualified in claiming the credit.
Credit Restrictions
The tax credit is offered only once per dependent minor child, regardless of how many times he or she has taken the course. The credit is also limited to the amount of the taxpayer’s income tax liability, which means it is not a refundable credit.
Furthermore, driver education expenses are disallowed in computing the credit if deducted or subtracted in computing Georgia taxable income. Finally, the credit cannot be carried forward to future tax years or carried back and applied to previous tax years, if any unused amounts remain.
What Kind of Documentation Should You Keep?
As of January 1, 2008, it is no longer necessary to submit documentation with your tax return. To claim the credit, you must keep written proof of successful completion and amount paid for the course with your tax return information.
How Do I Know Which Driving Schools Are Licensed?
For details as to which schools are licensed by the Department of Public Safety, please visit the following website: http://www.dds.ga.gov/Training and click on the “Certified Driver Education Schools” link.
Henssler Financial’s Tax & Accounting Division can assist you with information regarding this tax credit as well as any other tax related issues. Contact our experts at 770-429-9166 or experts@henssler.com.
Disclosures
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