I moved to GA 1/2 through the year and then got my Annual Bonus paid out in Dec 2012, since I was living in GA at time of payout my employer withheld GA taxes for that full payment when in reality 1/2 of the income was earned in my prior state, can I adj my GA income for that?

No - if the money was made available to you while you were a GA resident then it is subject to GA income tax. It doesn't matter that the bonus amount was based in part on work you perfromed earlier in the year as a resident of another state. All that matters is what state you were a resident of when you received the bonus.

ebaines has it right.

The GA tax rate tops out at 6%, so having it taxed by Georgia will beat a fair number of other states, like California, New York, Massachusetts or New Jersey.

eaines has it right.

The GA tax rate tops out at 6%, so having it taxed by Georgia will beat a fair number of other states, like California, New York, Massachusetts or New Jersey.

Thanks for your response... my challenge was I came from a no tax state

Glad to help!