One common issue in TaxWise for Georgia returns involves Refund Anticipation Loans (RALs) or Electronic Refund Checks (ERCs) where the state refund is intended to be added to the federal refund.
Understanding the GA 5 Error
The GA 5 error in TaxWise indicates an inconsistency between your bank application settings and the Georgia Form 500 instructions. Specifically, you've indicated on the bank application that the state refund should be combined with the federal refund for an RAL or ERC. However, you haven't made the corresponding selection on page 5 of the Georgia Form 500. Georgia requires explicit confirmation on the state return when you intend to combine refunds for these financial products.
The Solution: Matching Your Selections
To eliminate the GA 5 error, ensure consistent selections between your bank application and the Georgia Form 500. Here's how:
Review the Bank Application: Double-check your bank application within TaxWise. Confirm that you've selected the option to add the Georgia state refund to the federal refund for the RAL or ERC. Note the specific language used in your software, as it might vary slightly.
Navigate to Georgia Form 500, Page 5: Open the Georgia Form 500 within TaxWise and go to page 5.
Locate the Relevant Section: On page 5, find the section related to RALs or ERCs. Look for a checkbox or field that specifically asks whether you want to add the state refund to the federal refund for the purpose of the RAL or ERC. The exact wording may vary slightly depending on the form version.
Mark the Box: If you selected to combine the refunds on the bank application, you MUST mark the corresponding box on page 5 of the GA 500.
Verify Consistency: After making the selection on the GA 500, carefully review both the bank application and the GA 500 to ensure the selections match precisely.
Re-run Diagnostics: After making the correction, run the TaxWise diagnostics tool again to confirm that the GA 5 error has been resolved.
Important Considerations
Accuracy is Key: Pay close attention to the wording on both the bank application and the GA 500. Inaccurate selections will cause the error to persist.
Client Consent: Always obtain clear consent from your client before selecting options related to RALs or ERCs. Ensure they understand the fees and implications involved.
Form Updates: State tax forms can change from year to year. Always use the most up-to-date version of the Georgia Form 500 within TaxWise.
Reviewing E-File Results: Keep an eye on your e-file acknowledgements. If the return was filed with conflicting information, it may be rejected.