IT-Addback: Related-Member Intangible and Interest Expense Addback (Revision 2008-12)
Georgia · Georgia DOR · Used for tax years 2024, 2025, 2026
Georgia Form IT-Addback reports related-member intangible and interest expenses and costs that must be added back to income. It also records information supporting exceptions for income taxed by Georgia or another state and for expenses paid, accrued, or incurred to a related mem
Who files this form
Form IT-Addback is for taxpayers reporting related-member intangible expenses and costs, and interest expenses and costs, that must be added back under Georgia Code § 48-7-28.3 and Regulation 560-7-3-.05.
The form also provides sections for claiming exceptions. You must add back the related-member costs to income before claiming any exception.
What you'll need
Have the following information ready:
- Your taxpayer name, address, federal identification number, and taxable year's beginning and ending dates.
- The amount of related-member costs required to be added back.
- For each exception claimed, the related member's name, federal identification number, and relevant cost amounts. Attach a separate schedule for each related member.
Additional information depends on the exception:
- Section C, income taxed by Georgia or another state: State names, tax types, costs reported as income, apportionment ratios, and a description of the transactions' arm's length status. Attach an additional schedule for questions 4 through 9 if there are more than four states.
- Section D, a related member domiciled in a foreign nation: Country of domicile, a description of the comprehensive income tax treaty, and descriptions of the transactions' business purpose and arm's length status.
- Section E, costs paid to an unrelated party: The unrelated party's name and federal identification number, the portion of costs paid to that party, and descriptions of the business purpose of both sets of transactions.
Common mistakes
- Claiming an exception before adding back the costs. The form requires you to add back related-member costs first.
- Including excluded jurisdictions in Section C. Do not include jurisdictions where the related-member costs are subject to elimination.
- Leaving out required schedules. Sections C, D, and E require a separate schedule for each related member. Section C also requires a schedule for questions 4 through 9 if there are more than four states.
- Claiming exceptions above the addback amount. Total exceptions reported on the tax return, including additional schedules, cannot exceed Section B, line 1.
Questions people ask
Where do I report the addback on my tax return?
Enter the amount from Section B, line 1, on the applicable line in the tax return's Georgia “additions to federal taxable income” section.
What exceptions does the form cover?
Section C covers income allocated or apportioned to and taxed by Georgia or another state. Section D covers expenses paid, accrued, or incurred to a related member domiciled in a foreign nation. Section E covers expenses involving a related member who paid, accrued, or incurred expenses to an unrelated person. The form refers to specific provisions of Georgia Code § 48-7-28.3 and Regulation 560-7-3-.05 for additional information.
How do I enter the apportionment ratio in Section C?
Enter each state's apportionment ratio to six decimal places on line 7. If the related-member cost was allocated in full to that state, enter “1” for that state.
How do I calculate and report the total exception?
In Section F, add Section C, line 9; Section D, line 7; and Section E, line 7. Include amounts from those same lines on any attached separate schedules. Enter the total on the applicable line in the tax return's Georgia subtractions from income section. Total exceptions cannot exceed Section B, line 1.