What are the rules according to Georgia laws about claiming more that 1 dependent on your taxes? Is it true that there can only be no more than 2 dependents?

If you can legally claim the dependents, you can claim as many as you have.

If you claim three dependents, your exemption increases by $3,400 (for 2007), your Earned Income Credit does not increase, your Child Tax Credit for Qualifying children will increase by $1,000.

So if you don't have any taxable income after claiming two dependents, the third dependent won't make a difference.

Georgia follows the criteria specified for claiming dependents on the federal return.

In other words, there is NO LIMIT on the number of dependents that can be claimed.