The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Georgia's and may have different rules. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. The Personal Exemption, which is supported by the Georgia income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. The standard deduction, which Georgia has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction.Įssentially, it translates to $5,400.00 per year of tax-free income for single Georgia taxpayers, and $7,100.00 for those filing jointly. The current values of these deductions for tax year 2022 are as follows: The three most common deductions encountered by taxpayers are the Georgia Standard Deduction, the Georgia Personal Exemption, and the Georgia Dependent Deduction. In addition to marginal tax brackets, one of the major features of the Georgia income tax is deductions. Remember that Georgia may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Georgia income tax return. Qualifying deductions might include an itemized deduction, the Georgia standard deduction, exemptions for dependants, business expenses, etc. When calculating your Georgia income tax, keep in mind that the Georgia state income tax brackets are only applied to your adjusted gross income (AGI) after you have made any qualifying deductions. Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits.įor a more detailed estimate that takes these factors into account, click "View Detailed Estimate" (this will will redirect to an external website). Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.You can use the income tax estimator to the left to calculate your approximate Georgia and Federal income tax based on the most recent tax brackets. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies. To e-file your Virginia and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below. Benefits of e-Filing your Virginia tax return include instant submission, error checking, and faster refund response times. You can save time and money by electronically filing your Virginia income tax directly with the. For more details, visit the list of Virginia itemized deductions. You must choose between itemizing your deductions and choosing the Virginia standard deduction, so it's generally only worth itemizing your deductions if your itemized total is more then the Virginia and Federal standard deductions. Virginia allows itemized deductions, and you can claim the same itemized deductions on your Virginia tax return as you do on your Federal tax return. You can, however, claim dependent deductions on your Federal Tax Return. Unlike most states, Virginia does not have a dependent deduction. The Federal Income Tax, however, does allow a personal exemption to be deducted from your gross income if you are responsible for supporting yourself financially. Keep in mind that not all deductions allowed on your federal income tax return are necessarily going to be allowed on your Virginia income tax return. Certain itemized deductions (including property tax, qualified charitable contributions, etc) may be allowed depending on the income level and filing type of the taxpayer. Unlike many other states, Virginia has no standard deduction. For details on specific deductions available in Virginia, see the list of Virginia income tax deductions. Using deductions is an excellent way to reduce your Virginia income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and Virginia tax returns. Income tax deductions are expenses that can be deducted from your gross pre-tax income.
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