Will You Be Receiving a Special Georgia Tax Refund?

Will You Be Receiving a Special Georgia Tax Refund?

 

Thanks to a State of Georgia revenue surplus, legislators passed (and Governor Kemp signed) HB 1302, which provides Georgia taxpayers a refund of some or all of their 2020 income taxes due. Here’s what you need to know.

Determining Your Refund

Refer to your 2020 Georgia income tax return. If you filed a Form 500, the amount will be based on your tax liability listed on line 16. If you filed a Form 500EZ, the amount will be based on your tax liability listed on line 4. Tax liability is the amount of tax owed on the return before credit for any withholding, tax credits or other tax payments.

The amount you receive will depend on your filing status:

  • Single filers and married individuals filing separately could receive a maximum refund of $250.
  • Head of Household filers could receive up to $375.
  • Married individuals filing joint returns could receive up to $500.

Note that if your tax liability in 2020 was less than the amounts listed above, you will only receive a refund for the amount of your actual tax liability. Also, you will not receive a refund if you were a dependent on another person’s return in 2020.

Eligibility for the Refund

To be eligible, you need to have filed your 2020 return and your 2021 return by the deadline for filing the 2021 return (including any extensions), which is April 18, 2022. If you were a part-year resident of Georgia, you will be eligible for a proportional refund based on your filing status and share of Georgia taxable income.

Also, any refund due would be subject to offset first against any existing liabilities you owe to the state. This includes debt collection or payments owed to the state, such as delinquent child support payments.

Receiving Your Refund

The bill was signed into law on March 23. If you filed your 2021 return recently or have not yet filed, you may receive the HB 1302 refund along with any other refund due. If your return has already been processed, you’ll receive a separate refund. The Department of Revenue will automatically deposit the refund into your bank account or mail a check if you did not request direct deposit.

For more details, visit the Georgia Department of Revenue website.

Have You Taken Your RMD?

A Required Minimum Distribution (RMD) is the minimum amount that you must withdraw from your IRA or retirement plan account each year AFTER you reach age 72 (or 70½ if you were 70½ before January 1, 2020). In a workplace retirement plan, you can delay taking your RMD if you continue working and you’re not a 5% owner. However, you are still required to take RMDs from your traditional IRAs, and SEP, SIMPLE and SARSEP IRAs even if you continue working.

If you altered taking your RMDs in 2020 due to the CARES Act or SECURE Act, you may need to consider your current status.

If you reached age 70½ in 2019, you may have waived your RMDs due in 2020. However, you did have a 2021 RMD due by December 31, 2021, based on your account balance on December 31, 2020.

If you reached age 72 in 2021 (and didn’t reach 70½ in 2019), your 2021 RMD is due by April 1, 2022, and is based on your account balance on December 31, 2020. Your 2022 RMD is due by December 31, 2022, based on your account balance on Dec. 31, 2021.

If you left your job in 2021 and rolled over your workplace retirement plan into your IRA, the RMD from your IRAs for 2021 won’t be affected by the rollover, but you may have an RMD due from the retirement plan.

  • Amounts rolled over to your IRA from a workplace retirement plan in 2021 don’t affect your IRA RMD calculation since 2021 RMDs are based on your IRA account balances on December 31, 2020.
  • If you have a 2021 RMD due from your workplace retirement plan, it cannot be rolled over to your IRA.

Beneficiaries of IRA accounts must follow special distribution rules, which can be confusing. The SECURE Act changed how and when beneficiaries must take distributions when the account holder dies after 2019. If you’re unsure of your status, please contact us today. Missing deadlines can be costly, but we’re here to help.

Tax Filing Deadline: April 18, 2022

If we have not yet received your materials to file your Personal Tax Return, we’ll be happy to file an extension for you. Just let us know. Then, when you’re ready, just bring your paperwork to our office during regular business hours. Our 2021 Personal Tax Preparation Checklist will help make sure you provide everything we need.

Where’s My Refund?

The fastest and easiest way to check on your tax refund is by using the “Where’s My Refund?” tool on the IRS website or through the IRS2Go mobile app. You can use the tool within 24 hours after your e-filed return is received or four weeks after you mail a paper return.

The tool shows the progress as:

  • Return Received
  • Refund Approved
  • Refund Sent

Filing electronically and using direct deposit is the safest and fastest way to file and receive your refund. Most tax refunds are issued within 21 days, though some may take longer.

For state tax updates, visit:

2021 Tax Preparation Checklists Now Available

2021 Tax Preparation Checklists Now Available

Help yourself (and us!) make tax preparation easier by using these handy Checklists to pull together your tax materials for 2021. With another year of tax law changes and new programs, these Checklists will ensure you’ve got everything you need to file.

Please click on the Checklist name below to download a copy of the checklist. If you prefer, we can email it to you (just call or email Kimberly at kimberly@premiercpaservices.com to request your copy). You can also download both forms here.
Remember: We’re back open on Fridays now for the busy tax preparation season. Please contact us with any questions or concerns you may have.

Venmo, PayPal and Cash App to Begin Reporting Payments of $600+

If you rely on payment apps like Venmo, PayPal and Cash App for your business, you should be aware of a new tax law that took effect this year. Third-party payment processors will now report your business transactions to the IRS if they exceed $600 for the year — and send you a Form 1099-K with this information. (Previously they were required to send you Form 1099-K if your gross income exceeded $20,000 or you had 200 separate transactions within a calendar year.)

The new rule applies to payments for goods and services transactions — NOT for personal payments to your roommate for rent, for example, or to a friend when splitting dinner costs.

Note that you should already be reporting income over $600 to the IRS on your 1040, whether or not you receive a Form 1099-K. This new rule just means the IRS will be able to cross-reference the amounts beginning with your 2022 tax return.

 

Use ID.me for Easy IRS Access

The IRS is now using ID.me to help ensure the privacy and confidentiality of your information when using IRS tools, including:

If you already have an IRS user name, you may continue to use your existing credentials to sign-in — but you will be prompted to create an ID.me account for future access. To verify your identity with ID.me, you’ll need to provide a photo of an identity document, such as your driver’s license, state ID or passport. You’ll also need to take a selfie with a smartphone or a computer webcam. Once your identity is verified, you can securely and easily access IRS online services.

Tax Filing Begins Jan. 24

The IRS will begin accepting and processing 2021 tax year returns beginning next Monday, January 24. The IRS urges you to file electronically to speed processing and refunds — most people receive their refund within 21 days when they use direct deposit.

Note that the tax filing deadline will be April 18 — for both federal and Georgia income taxes. The due date is April 18 instead of April 15 because of the Emancipation Day holiday in the District of Columbia. If you request an extension, you will have until Monday, October 17, 2022, to file.

Money Brief: Report Virtual Currency Transactions

If you received, sold, exchanged or otherwise disposed of any financial interest in virtual currency — like Bitcoin — you’ll need to provide us with that information so it can be included on your Form 1040.

Money Brief: UGA Business Webinars

UGA’s Small Business Development Center offers a wide variety of online training programs to help new business owners, such as “Writing a Business Plan,” “QuickBooks” and “Hiring to Win.” Register today to learn more about operating your small business.

2022 Calendar: Know Your Tax Dates & Deadlines

2022 Calendar: Know Your Tax Dates & Deadlines

We will be developing a new Tax Checklist to help you pull together your tax preparation materials for 2021. We hope to have that ready in our next newsletter. Until then, please take note of these important tax-related dates for the new year:

Tuesday, January 18:

  • Pay estimated taxes for 4th quarter 2021.

Monday, January 31:

  • File Form W-2s and other wage statements if you are an employer.
  • Provide Form W-2s to employees, and Form 1099-MISC, Miscellaneous Income and Form 1099-NEC, Nonemployee Compensation to the appropriate recipients. (Note: If we are filing these forms for you, please get your information to us ASAP.)

Friday, April 1:

  • First RMD due if you turned age 72 in 2021

Monday, April 18*:

  • File your 2021 federal tax return and pay any tax due, or request a 6-month extension.
  • Pay estimated taxes for 1st quarter of 2022.
  • Contribute to your IRA for 2021.
  • Contribute to your HSA for 2021.
  • Contribute to your 401(k) or SEP for 2021 if self-employed.

Wednesday, June 15:

  • Pay estimated taxes for 2nd quarter 2022.

Thursday, September 15:

  • Pay estimated taxes for 3rd quarter 2022.

Monday, October 17:

  • File your 2021 federal tax return if you requested an extension.

 *April 15th is Emancipation Day, a legal holiday in Washington, DC.

 

Important Letters Coming Your Way

If you received advance payments of the Child Tax Credit last year, keep an eye out for Letter 6419 from the IRS. The letter includes the total amount of Advance Child Tax Credit payments you received, if any, in 2021. Note that if you chose NOT to receive advance payments, you can claim the full child tax credit when you file your 2021 tax return. 

If you didn’t qualify for the third Economic Impact Payment (EIP or “stimulus check”), or you didn’t receive the full amount, you may be eligible for the Recovery Rebate Credit when you file your 2021 tax return. The IRS will soon send you Letter 6475, which contains the total amount of the third stimulus payment you received.

We will need a copy of these letters to prepare your 2021 tax return.

Tax Appointments

We’re taking tax appointments now if you’re a new client or have major changes to your taxes. Plan ahead and call 706-632-7850 to reserve your spot. Note that you do NOT need an appointment for us to handle your tax preparation — you can just drop off your files when you’re ready.

2022 Mileage Rates

The IRS updated mileage rates for 2022 based on rising fuel prices and other costs:

  • 58.5 cents per mile for business use (up 2.5 cents per mile).
  • 18 cents per mile for either medical or moving purposes for qualified active-duty members of the Armed Forces (up 2 cents per mile).
  • 14 cents per mile in service of charitable organizations (no change from 2021).

Note that if you choose to use the standard mileage rate, you must opt to use it in the first year the vehicle is available for business use. Then, in later years, you can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period if the standard mileage rate is chosen.

Corporate Registration Due by April 1

If you own a business in Georgia, you must renew your corporate registration each year between January 1 and April 1. To do so, simply visit the registration page. Beware of misleading notices you may receive that offer to file your corporate registration for a higher cost than doing so yourself. It’s a quick process you can handle easily online.

Need to Know: New Lodging Tax Begins on July 1

Need to Know: New Lodging Tax Begins on July 1

Beginning July 1, 2021, owners of certain short-term rentals must begin paying hotel taxes under House Bill 317, which was signed into law by Governor Kemp last month. The law requires that home rental companies, such as Airbnb and VRBO, collect Georgia’s $5-per-night lodging tax as well as local excise taxes.

House Bill 317 imposes the $5 fee on all lodging facilities and rooms except those that do not provide shelter and extended-stay rentals (30+ days). The costs will be passed on to renters in their bills.

Lodging Tax Expanded

In short, House Bill 317 revised the state definition of “innkeeper” (used to calculate lodging excise taxes) to include Airbnb and other marketplace-based innkeepers. It adds a $5 nightly tax to short term rentals in addition to the sales tax, and Fannin County and City of Blue Ridge lodging taxes already levied. The county’s tax rate is currently 6%, while rentals within the city limits pay 8%.

Total lodging taxes for all local rentals are now:

  • 7% Sales Tax
  • 6% Fannin County Lodging Tax
  • 2% City of Blue Ridge Lodging Tax (if applicable)
  • $5-per-night Hotel Tax

More Money for Local Spending

The lodging tax is projected to raise $17 million for the state in 2022, while local governments could receive $20 to $30 million annually. In Fannin County, the hotel/motel tax is split 50/50 with the Chamber of Commerce, with the county funds spent mostly on public safety projects. The Chamber’s 50% is spent on marketing and tourism, which helped generate $273.3 million in direct visitor spending in 2020, including $65.6 million in lodging.

If you need assistance computing or filing lodging and excise taxes, please contact us at (706) 632-7850. We can help you update your systems for the new tax rates. 

Where’s My Refund?

Still waiting on your federal or state tax refund? You can start checking your federal refund status within 24 hours after an e-filed return is received by using the Where’s My Refund? tool on the IRS website. The tool provides a personalized refund date after the return is processed and a refund is approved.

The IRS updates the Where’s My Refund? tool once a day, usually overnight, so you don’t need to check the status more often. You will need to allow time for your financial institution to post the refund to your account or for it to be delivered by mail.

To Use the Tool, You Will Need:

  • Your Social Security number or Individual Taxpayer Identification number
  • Your tax filing status
  • The exact amount of the refund claimed on your tax return

Where’s My Refund? Links:

Reporting Tip Income

Generally, income you receive from any source, such as tips, is taxable. This includes:

  • Tips directly from customers.
  • Tips added using credit cards.
  • Tips from a tip-splitting arrangement with other employees.
  • Non-cash tips, such as tickets, passes or other items of value.

If you receive $20 or more in tips in any one month, you must report your tips for that month to your employer by the 10th day of the next month. Your employer must withhold federal income, Social Security and Medicare taxes on your reported tips.

2021 Appropriations Act Provides Additional Pandemic Relief

2021 Appropriations Act Provides Additional Pandemic Relief

On December 27, 2020, President Trump signed into law the newest $900 billion COVID-19 relief bill. The legislation, part of the Consolidated Appropriations Act, 2021, provides additional pandemic relief and clarifies the deductibility of business expenses paid with forgiven Paycheck Protection Program (PPP) loans. Key provisions of the new law include:

  • $166 billion for Economic Impact Payments of $600 to each eligible taxpayer (see Money Brief at right).
  • $120 billion for $300 per week in extended weekly unemployment benefits (December 26, 2020-March 14, 2021).
  • $25 billion in emergency rental aid, plus an extension of the national eviction moratorium (through January 31, 2021).
  • $325 billion in aid for small businesses, including $284+ billion for additional PPP loans; $20 billion for Economic Injury Disaster Loan (EIDL) Grants; $15 billion for shuttered live venues, independent movie theaters and cultural institutions; and $12 billion for businesses in low-income and minority communities.
  • $45 billion in transportation funding (for airlines, transit systems, state highways and more).
  • $82 billion in funding for colleges and schools, plus $10 billion in childcare assistance.
  • $22 billion for state, local, tribal and territorial governments.
  • $13 billion for emergency food assistance, including a six-month, 15% increase in SNAP benefits.
  • $7 billion for broadband expansion.

The new law also extends the Employee Retention Tax Credit and several expiring tax provisions, and temporarily allows a 100% business expense deduction for meals (up from the current 50%) as long as the expense is for food or beverages provided by a restaurant. This provision is effective for expenses incurred January 1, 2021, thru December 31, 2022.

Second Round of PPP Funds Available

The new round of PPP — or PPP2 — is similar to the first round of PPP loans, but includes several important differences:

1) PPP2 loans are available to both first-time qualified borrowers and to businesses that previously received a PPP loan. Specifically, previous PPP recipients may apply for another loan of up to $2 million if they:

  • Have 300 or fewer employees.
  • Have used or will use the full amount of their first PPP loan.
  • Can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.

2) PPP2 loans are now available to Sec. 501(c)(6) business leagues, such as chambers of commerce, visitors’ bureaus, and destination marketing organizations, if:

  • They have 300 or fewer employees, and
  • Their lobbying activities comprise no more than 15% of their total activities, and cost no more than $1 million during the most recent tax year that ended prior to February 15, 2020.

3) Other first-time borrowers that may now apply for PPP loans include:

  • Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans.
  • Sole proprietors, independent contractors, and eligible self-employed individuals.
  • Not-for-profits, including churches.
  • Accommodation and food services operations (those with NAICS codes starting with 72) with fewer than 300 employees per physical location.

4) Borrowers that returned all or part of a previous PPP loan may reapply for the maximum amount available to them.

Perhaps the best part of the new law specifies that business expenses paid with forgiven PPP loans ARE tax-deductible. This reverses previous IRS guidance that such expenses could not be deducted.

PPP Forgiveness Criteria Expanded

As before, the costs eligible for loan forgiveness include payroll, rent, covered mortgage interest and utilities. However, PPP2 also makes the following potentially forgivable:

  • Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 federal health and safety guidelines.
  • Expenditures to suppliers that are essential to the recipient’s current operations.
  • Covered operating costs, such as software, cloud computing services and accounting needs.

To be eligible for full loan forgiveness, PPP2 borrowers will have to spend no less than 60% of the funds on payroll over a period of either eight or 24 weeks. PPP2 borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs in the year prior to the loan or the calendar year, but the maximum loan amount has been cut to $2 million. PPP2 borrowers with NAICS codes starting with 72 (hotels and restaurants) can get up to 3.5 times their average monthly payroll costs, subject to the $2 million maximum.

The new COVID-19 relief law creates a simplified forgiveness application process for loans of $150,000 or less. It also repeals the requirement that PPP borrowers deduct the amount of any EIDL advance from their PPP forgiveness amount.

Tax Deductibility for PPP Expenses Clarified

Perhaps the best part of the new law specifies that business expenses paid with forgiven PPP loans ARE tax-deductible. This reverses previous IRS guidance that such expenses could not be deducted. The new law states that “no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided” by Section 1106 of the CARES Act (which has been redesignated as Section 7A of the Small Business Act). This provision applies to both PPP1 and PPP2 loans.

Keep in mind, however, that the state of Georgia may not follow the new federal rules regarding business expenses. For example, for taxable years beginning on or after January 1, 2018, and before January 1, 2019, Georgia has NOT adopted any of the 2019 or 2020 federal changes, including the federal CARES Act. So we may need to wait a bit — or file an amended state return — to find out how Georgia will handle the newly passed federal tax law.

We’re currently putting together a list of items we’ll need from you to file your taxes. Please bear with us as we negotiate all the changes involved due to COVID-19. If you have any questions, please feel free to contact us.

Source: Journal of Accountancy

Prepare Now for Tax Season

We expect tax season to be a little more chaotic this year, so we’ll be putting together a checklist of items you’ll need to supply with your paperwork for us to prepare and file your taxes. Look for it early next year!

Beginning on January 8, 2021, we’ll be open on Fridays to assist you with your tax and financial planning needs.

We’re also taking tax appointments now if you’re a new client or have major changes to your taxes. Plan ahead and call Amber at 706-632-7850 to reserve your spot. Note that you do NOT need an appointment for us to handle your tax preparation — you can just drop off your files when you’re ready.

Money Brief: New $600 Stimulus Payments

You can expect to receive $600 directly deposited into your bank account within the next week or two, if you haven’t already. Paper checks have also started mailing out. The payments are part of the COVID-19 relief package signed by President Trump on December 27. Eligible individuals who meet income limits will receive $600; couples, $1,200; and families, an additional $600 per child. As before, your most recent tax return determines your eligibility for the stimulus payment — you’ll receive the full amount if you made under $75,000 as an individual or $150,000 as a couple.

Money Brief: GDOL Update

If you are a Georgia business owner, note that your 2021 Annual Unemployment Insurance (UI) Tax Rate Notice will be delayed. The Georgia Department of Labor expects to release the notices on the Employer Portal in February. Because of this, Employer Quarterly Tax and Wage reports will NOT be accepted for the 1st quarter of 2021 until the new tax rates are released. Look for an email once the 2021 tax rate notices are published — they will NOT be mailed. If you are not already registered on the GDOL Employer Portal, be sure to register to avoid delays in receiving your notice. Go to dol.georgia.gov, click on the Employers tab, and select Employer Portal.

Money Brief: 2021 Mileage Rates Decrease

The standard mileage rate for business use of a vehicle is decreasing in 2021 — to 56 cents per mile — down from 57.5 cents per mile in 2020. The rate applies for self-employed taxpayers who deduct automobile expenses if they qualify as ordinary and necessary business expenses, and employers who reimburse their employees for operating an automobile for business.

Money Brief: EITC/ACTC May Delay Refunds

If you claim the Earned Income Tax Credit or Additional Child Tax Credit, your refund (if any) may be delayed. By law, the IRS must hold the entire refund — even the portion not associated with EITC/ACTC — until at least mid-February. If you choose direct deposit, EITC/ACTC-related refunds should be available by the first week of March.

What You Need to Know About Unemployment

What You Need to Know About Unemployment

Thanks to the Coronavirus Aid, Relief and Economic Security (CARES) Act, unemployment payment amounts will increase, more folks will qualify, and benefits will be available longer.

Previously, only those workers who receive W-2s from their employer qualified for unemployment benefits. However, with the new Pandemic Unemployment Assistance (PUA) through the CARES Act, folks who are self-employed, gig workers, 1099 independent contractors or have a limited work history can now also file for unemployment benefits.

The normal unemployment application is being modified for these types of workers and is now available on the Georgia DOL website. If you have already filed a claim with the GDOL and will be eligible to potentially receive benefits under this program, you do NOT have to refile your claim. Instead, you will be sent an email with a link to provide additional information for the PUA Program.

Other Important Details

GDOL expects to start distributing an additional $600 from the Federal Pandemic Unemployment Compensation next week. This would be added on top of Georgia’s existing unemployment benefits package, which ranges from $55 to $365 weekly. So, the most someone could receive weekly is $965 with the federal and state packages combined.

  • The Georgia DOL time period for receiving unemployment benefits has been extended from 14 weeks to 26 weeks.
  • With the CARES Act, the time period could increase 13 more weeks.
  • UI recipients can earn up to $300 per week before earnings begin to count against their benefits.
  • If your employer files the unemployment claim for you (the preferred method), you should receive your first payment within a week or so. If you file a claim yourself, it could take up to three weeks.
  • Payments will arrive via a “Way2Go” Debit MasterCard that has been sent to you or by direct deposit.

You can visit the GDOL website to access an application and follow step-by- instructions and video tutorials on applying for unemployment.

The Georgia Department of Labor processed 390,132 unemployment claims during the week of March 29-April 4 — more claims in seven days than were processed in all of 2019! And the U.S. Department of Labor announced that around 10% of the total American workforce are currently unemployed.

When Will You Get Your Stimulus Money?

When Will You Get Your Stimulus Money?

The first round of stimulus money should start arriving this week for those who already have direct deposit set up with the IRS. But that’s just the beginning … the process could take several months to get money to every taxpayer — more than 100 million of us!

Also, it will likely take longer if a check must be mailed to you. So if you don’t already have direct deposit set up with the IRS, you can do so on the IRS’s website here.

While most taxpayers will receive the maximum of $1,200 each, the amount you receive depends on the amount of your adjusted gross income from either your 2018 or 2019 taxes. You can use this calculator to figure out how much you’ll receive.

Note that the IRS plans to mail a letter to your last known address within 15 days after the payment is made to verify you have indeed been paid. The letter will provide information on how the payment was made and how to report a missing payment.

Keep Those Returns Coming!

Although the tax-filing deadline has been extended to July 15, we recommend completing your return as soon as you are able. (It may help you get your stimulus check sooner, too!) We’re continuing to work in the office full-time, so you’re welcome to drop off your paperwork anytime. We have a dropbox outside our office door. Or you may simply email it to us at jackie@premiercpaservices.com.

Have You Renewed Your LLC or Corporation Yet?

If you plan to apply for the Paycheck Protection Program, note that you must have a current business registration, which shows your company is in good standing with the State. In light of the COVID-19 crisis, the 2020 annual registration period has been extended an extra month, now ending on May 1, 2020. Note that if your registration has not been renewed for two years, the State may dissolve your business entity! This will require a trip to your attorney and additional fees to make your company active again. You can check your company’s status at the Georgia Secretary of State website here. You can now register your business for one, two or three years.
A Matter of Choice: Understanding Georgia’s QEE Tax Credit

A Matter of Choice: Understanding Georgia’s QEE Tax Credit

If you are passionate about school choice, you’ll want to know about Georgia’s Qualified Education Expense (QEE) Tax Credit. Launched in 2008, the program allows individuals, married couples and businesses to claim a dollar-for-dollar tax credit on their Georgia income taxes for donations to qualified preK – 12 schools. Specially designated Student Scholarship Organizations (SSOs) use the contributions to award scholarships so that students can attend private schools chosen by their parents. Several local institutions qualify, including:

  • Fannin Christian Learning Center
  • Josephine Edwards Christian School
  • Mountain Area Christian Academy
  • North Georgia Christian Academy

Currently, Georgia taxpayers can make contributions up to the following limits:

  • Up to $1,000 for single individuals;
  • Up to $1,250 for married individuals;
  • Up to $2,500 for married couples filing jointly;
  • Up to 75 percent of their Georgia income tax liability for “C” corporations; and
  • Up to $10,000 for members of limited liability corporations (LLCs), shareholders in Subchapter “S” corporations, and partners in partnerships.

The amount of tax credit is limited to the donor’s tax liability or actual donation amount, whichever is less.

To earn the credit, go to the GaSSO website and complete the 2020 Tax Credit Form (georgiasso.us/pledge-form) by December 31, 2019. GaSSO will then file your form electronically with the Georgia Department of Revenue, which must pre-approve your donation, as there are only a limited amount of tax credits available each year ($100 million).

If you have a student attending MACA, you can apply for a scholarship for your child through GaSSO. Click this link for the application form: georgiasso.us/scholarship-application-form

Start Saving for College, Too!

Georgia’s Path2College 529 Plan (www.path2college529.com) offers significant tax advantages for those saving for future higher education expenses. Contributions grow tax-deferred, and withdrawals for qualified higher education expenses are tax-free. Funds may be used at virtually any college or university in the United States, and many abroad.

Contributions up to $2,000 per year, per beneficiary, are eligible for a Georgia state income tax deduction for those filing a single return; and $4,000 per year, per beneficiary, for those filling a joint return. The Path2College 520 Plan currently offers seven investment options, and may be opened with as little as $25.

If you’re considering participating in the QEE Tax Credit program and/or Path2College 529 Plan, just let us know and we can provide more details on the potential tax savings.

Do You Need a Sales Tax Permit?

If you’re starting a new business — whether retail, rental or even a home-based business — you may need to charge sales tax. Essentially, anyone selling tangible items in the state of Georgia needs a sales tax permit.

You can easily register your business at the Georgia Tax Center website (gtc.dor.ga.gov/_/#1) by clicking on “Register a New Georgia Business.” Before you do, make sure you have some basic information handy, including:

  • Business name, address, etc.
  • Business type
  • Business history (including any previous state IDs)
  • Business ownership details (including any partners)
  • Withholding information

Note that there is no cost to apply for a sales tax permit in Georgia (there may be other business registration fees). You will not need to renew the permit, though you will need to update it if your address or other information changes. Online registration is quick — your actual permit will arrive in the mail within days after you register.

If you have any questions about your sales tax status or need help registering, give us a call. We can also handle your sales tax payments for you, saving you the time and hassle.

The information provided here by Premier CPA Services PC is for general information only. It does not constitute legal, accounting, tax or other professional advice or services, and is presented without any representation or warranty as to the accuracy or completeness of the information. Please contact us for information as it relates to your circumstances.
Know Your Payroll Tax Due Dates

Know Your Payroll Tax Due Dates

I your small business has employees, you need to withhold and pay Georgia AND Federal income tax on a regular basis. There are five possible payment schedules for withholding taxes in Georgia:

  • Next-business-day
  • Semi-weekly
  • Monthly
  • Quarterly
  • Annually

Your payment schedule depends on the average amount you withhold from employee wages over time. The more you withhold, the more frequently you need to make withholding tax payments. (Note: The IRS requires three deposit schedules: semi-weekly, monthly, or quarterly if your overall liability is $2,500 or less.)

Threshold dollar amounts for the different payment schedules may change over time, so check with us (or the Georgia Department of Revenue) at least once a year for the latest information. Due dates for payments are:

  • Semi-weekly: Payments are due by Wednesday for amounts withheld on the preceding Wednesday, Thursday or Friday — or by Friday for amounts withheld on the preceding Saturday, Sunday, Monday or Tuesday.
  • Monthly: Payments are due by the 15th day of the month following the month in which the tax was withheld.
  • Quarterly: Payments are due by the last day of the month following the end of the quarter.
  • Annually: Payment is due by January 31st.
Businesses making semi-weekly or monthly payments must also file quarterly withholding tax returns. (Quarterly and annual filers only need to file the correct version of Form G-7.) G-7 returns are due on or before the last day of the month following the end of the quarter:
  • April 30 for 1Q (Jan–Mar)
  • July 31 for 2Q (Apr–Jun)
  • October 31 for 3Q (July–Sep)
  • January 31 for 4Q (Oct–Dec)

For specific dates and forms, please refer to the Georgia Department of Revenue website.

We Can Handle Your Payroll

Speaking of payroll, did you know that Premier CPA Services can handle your payroll processing? We can also take some of the pain out of your business reporting chores by taking care of Quarterly Payroll Reporting (Federal and State), as well as state and/or local sales tax reports on a monthly, quarterly or annual basis. Give us a call today to find out more about our small business services.

The information provided here by Premier CPA Services PC is for general information only. It does not constitute legal, accounting, tax or other professional advice or services, and is presented without any representation or warranty as to the accuracy or completeness of the information. Please contact us for information as it relates to your circumstances.