According to the U.S. Government Accountability Office, income tax identity theft is a major problem in Georgia and across the United States. The crime costs taxpayers around $6 billion each year.
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.
Partnerships are unincorporated companies, so the IRS does not tax these businesses directly. Rather, the owners are required to report the profits they earn through the partnership on their personal income taxes because they are considered self-employed. New partnership owners in Georgia might not know all of the requirements involved.
For individuals living in Georgia and anywhere else in the United States, it is very important to know when the income tax year begins. For most people, the tax year is 12 consecutive months and runs from Jan. 1 to Dec. 31, and tax returns are due by April 15 of the next year. However, there are exceptions.
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 Code of Georgia sets forth the structure of personal income taxes levied by the state in Title 48, Chapter 7. Not all states charge income taxes, and the ones that do not typically fund public necessities like schools and police departments with higher consumer taxes. Georgia's income tax laws establish a graduated payment schedule, which means that those who earn more money pay a greater percentage of income in taxes.
Georgia churches may benefit from exemptions from federal income taxes, but a Mississippi case may be of concern as misuse of the church designation has landed a Christian physician in serious legal trouble with the IRS. The man was convicted on four felony counts of tax evasion as well as a single count of obstruction of administration. According to reports, the man skirted paying income taxes by funneling income through an entity called the Church of Compassionate Service.