Georgians will be using new tax return forms when they file their taxes next year. The new Form 1040 has substantial changes and is now one page long. The IRS recently released a draft of the new form. While the new form might make filing taxes easier for many people, others who have complicated tax situations will have a more difficult time.
Georgia investors who are involved in solar energy development can benefit from a guidance published by the Internal Revenue Service. It said that developers who invest at least 5 percent of the complete cost of a utility-level solar project can receive a 30 percent investment tax credit. This policy applies to all investors until the end of 2019.
Many Georgia residents are trying to figure out how the new tax laws will impact their future returns. Many believe that it will be easier to file their taxes going forward. While there will be fewer people who itemize, those who continue to do so will likely find that their returns are no easier to file than they were in the past.
Georgia residents who can't file their tax return by the April 17 deadline are entitled to ask for an additional six months to do so. In most cases, the extension request is granted automatically. Furthermore, it is generally possible to do so by filing IRS Form 4868 or through a taxpayer's preferred tax filing software program. It is important to point out that this is only an extension to file the return itself.
Georgians who have bank accounts and assets located overseas must report them to the Internal Revenue Service. The IRS has announced that it is ending the Overseas Voluntary Disclosure Program, or OVDP, on Sept. 28, 2018. Taxpayers who have undisclosed foreign assets have until then to voluntarily disclose their overseas accounts and assets without facing possible criminal prosecution.
To avoid delays in receiving tax refunds, Georgia residents should take care to avoid certain common mistakes when completing their returns. While many people may believe that only significant mistakes will cause the Internal Revenue Service to hold on to their refunds, many delays are actually caused by easily preventable mistakes.
Taxpayers in Georgia who have a balance when they complete their returns are not alone. The Internal Revenue Service reports that more than 18 million people in the country owed federal taxes in September 2014. Annually, around 10 million people have to pay tax penalties.
Georgia residents who were waiting to file their 2017 income return so that they could claim a tax extender may now be able to file, depending on which tax break they intend to claim. Several tax breaks that expired in 2016 were renewed for 2017, but that didn't actually happen until early in 2018. The Internal Revenue Service told people who wished to claim any of the tax breaks to wait until it was ready to process them. The IRS is now ready to accept returns that claim any of three specific benefits, but people who wish to claim any of the others will still have to wait.
The IRS says that it will process 155 million tax returns during the 2018 income tax season. However, not all Georgia residents necessarily need to file a tax return. This will depend on one's earned income and personal exemption. Those who do have to file an income tax return for 2018 will have until April 17 to do so. This is because April 15 and April 16 are a Sunday and a holiday.
Georgians who have invested in bitcoin should be aware that they must report any income that they made from selling or trading cryptocurrency on their income tax returns. Some people have the mistaken idea that digital currency is beyond the reach of the Internal Revenue Service, but it is not.