Georgia residents sometimes enter into tax-sharing agreements through which two parties agree to be responsible for paying a certain percentage of the tax liabilities owed. These types of agreements or orders are common in divorce cases. As a 2017 case demonstrates, the agreements are not binding on the Internal Revenue Service.
Georgia residents who need more time to file their taxes may ask for an extension. This means that those who ask for an extension on their 2017 personal tax returns won't have to file until Oct. 16. One of the best reasons to ask for an extension is to cut down on potential late fees. The IRS charges a 5 percent late filing fee for each month that a return is late on top of any taxes owed.
Georgia residents may have heard about income tax identity theft. The act involves a criminal stealing a person's social security number and using it to file a fraudulent return. The criminal's goal is to trick the IRS into sending a refund based on that fraudulent return. In an effort to combat this problem, the IRS, state tax agencies and private companies have joined forces.
Georgia residents who have had all or part of their debt canceled by a lender normally have to report the amount as taxable income. However, for mortgage debt that has been canceled, homeowners may be able to take advantage of a tax exclusion.
As the owner of a small business, tax season is not likely to be your favorite time of year. Not only is it a complicated process to file your individual taxes, but now you must ensure that your business taxes meet federal guidelines and that you avoid an audit whenever possible. Fortunately, there are some tax breaks available to those who own businesses. Throughout the year and when you are filing during tax season, keep these in mind.
Georgia residents may be in the habit of filing a tax return each year. However, depending on an individual's filing status and income, that may not be necessary. Typically, people don't have to file if their income is less than the standard deduction and personal exemption combined. For a single filer over the age of 65, that amount would be $11,900.
In some cases, Georgia residents may want to give loved ones money for their IRAs. They may be concerned that doing so will be a taxable event, however. As long as the amount that is given is under the annual federal gift tax exclusion amount, people do not need to worry about that issue.
Many Georgia residents have likely heard about the sexual harassment lawsuit that was filed against former Fox News Chairman and CEO Roger Ailes. Gretchen Carlson, a former Fox News anchor, brought sexual harassment allegations against Ailes that quickly became very public. After Carlson's lawsuit was filed, six other women told their stories about Ailes to New York magazine, and Ailes stepped down from his position at Fox News.
Georgia residents may be familiar with the idea of a marriage penalty on federal tax returns. The concept relates to tax scenarios that provide greater advantages to unmarried partners than to those who tie the knot. While many ignore these issues as they wed, some may allow these financial matters to influence their consideration of getting married.
Many Georgia residents look forward to the Olympic Games, but it is not just the nation's sports fans who are cheering on Team USA in Rio de Janeiro. Athletes who earn medals also receive handsome cash prizes, and returning American athletes will arrive home to find Internal Revenue Service standing in line to receive its share. However, few Team USA members will have an Olympic tax bill as high as record-breaking swimmer Michael Phelps who will owe the IRS about $55,000 after winning five gold medals.