Georgia residents may be interested to learn that the U.S. Supreme Court has ruled a Maryland tax unconstitutional because it essentially results in the double taxation of income that its residents earn in other states. The 5-4 decision, which came down on May 18, means Maryland will lose out on hundreds of millions of dollars in tax revenues. It could also affect tax laws in nearly 5,000 local governments in other states, including Indiana, New York, Ohio and Pennsylvania.
In many cases, individuals are required to pay taxes on any income from wages, investments or prize winnings. However, there are times when income is not considered to be taxable. For instance, if an individual wins an award, he or she may not need to pay taxes on any money that comes with the award. This is true if the winner does not need to perform substantial services in the future or if the money is donated to charity.
After a person files a Georgia state income tax return, the Georgia Department of Revenue may review the return and make an initial determination that the filer owes additional tax. Generally, the first time a person will learn of the additional tax assessment is when they receive a notice of assessment from the DOR in the mail.
Taxpayers in Georgia may benefit from learning more about how to ensure that income taxes are properly filed and accounted for. In accordance with federal regulations, some taxpayers in Georgia may be required to file their returns electronically. Georgia residents who are required to file electronically have two options available. People typically choose to file online from home, but some enlist a tax professional who provides an electronic filing service. Individuals who choose to do it online from home may only use tax software that's been approved by the IRS.
The Internal Revenue Service recently adopted a new Taxpayer Bill of Rights. The document groups the rights found in the Internal Revenue Code into 10 categories in an effort to make them easier to find and understand. First is the right to be informed, meaning that laws, regulations and procedures should be easy to understand and follow.
A bill that passed the House of Representatives with a vote of 237-173 would increase the number of middle class Americans who would be able to take advantage of the child tax credit. However, President Obama has indicated that he will veto the legislation if it reaches his desk. Today, single filers who make up to $75,000 can claim the full credit while married couples who make up to $110,000 can claim the credit.