Georgia residents may have heard that the new Form 1040 is going to be shorter than previous versions. This was one of the benefits touted by those who supported the Tax Cuts and Jobs Act (TCJA). However, taxpayers should be aware that there are six schedules that could need to be attached to the new form. Individuals who owe self-employment taxes or tax deductions or who need to pay the alternative minimum tax (AMT) will have to go through this process.
Most people living in Georgia take care to submit accurate tax returns. However, some tax documents end up being flagged by the IRS's algorithms, subjecting filers to an audit. Interestingly, there is some evidence that it is not the wealthy who are the most likely to be audited, but those who claim lower incomes and might be eligible for the earned income tax credit.
At some point, Georgia retirees must start taking distributions from their retirement savings accounts. The IRS mandates that individuals must start taking these distributions starting in April of the year after turning age 70 1/2. Furthermore, they must calculate and abide by their required minimum distribution. This amount is based on how long a person is expected to live as well as their account balance at the end of the previous year.
For small business owners, finally getting their taxes filed may be the beginning rather than the end. The Internal Revenue Service can review your taxes and decide it wants a closer look. Thus, you may learn your business faces an audit.
Those watching television or reading the news in Georgia have probably heard about Michael Cohen. They may also know that he pleaded guilty to tax evasion and was sentenced to prison time. Those who would like to avoid a similar fate can take some steps to do so. For instance, taxpayers should be sure to report all of their income each year when filing a tax return.
If a company based in Georgia or anywhere else has a foreign tax bill of less than 13.125 percent, it will owe a 10.5 global intangible low-tax income tax. This tax is otherwise known as Gilti, and businesses had lobbied the IRS to make changes to how it is assessed. For instance, they wanted to avoid allocating domestic expenses to foreign subsidiaries, but the IRS ruled that half of such expenses must be allocated to foreign subsidiaries.