Figuring out how to pay Georgia state taxes isn’t optional. Every citizen who receives an income from a source in the state of Georgia must report and pay their fair share of the state’s income taxes. As a citizen, you also need to make sure that you pay your share of federal income taxes as well.
That’s not all, either. If you’re a GA business owner, you’ll also have to deal with state withholding, sales tax, and other business taxes in addition to your personal state and federal taxes.
If your tax situation is complicated or you’ve recently received a tax bill that you’re not sure how to pay off, then it might be time to get in touch with a tax resolution attorney who will consider your unique tax and financial situation to help you come up with a plan. That said, we’ll go over some general information about the different taxes in Georgia and how to pay them off below.
The Importance of Paying State Taxes in Georgia
Have you ever stopped to consider how our governments operate and fund their systems of justice, programs, and services? In Georgia and every state in the U.S., local and state governments operate based on the revenue generated through taxation.
It’s important for citizens to pay state taxes because this monetary support keeps our governments going. On top of this obligation to society, paying your taxes is also a legal obligation. Under the law in Georgia, it is possible to get charged with a crime if a person willfully evades or attempts to evade paying their fair share of taxes. You won’t face criminal charges if you genuinely can’t pay off what you owe, but it is a crime to intentionally avoid paying when you could potentially be fulfilling your duty.
Finally, it is possible for you to file your taxes only to receive a refund rather than a bill. In Georgia, an average of 76% of citizens receive tax refunds rather than bills when they file.
The Consequences of Late or Incomplete Tax Payments
One of the biggest reasons why it’s important to file and pay your tax burden is because you will face consequences if you don’t. The first thing that will happen if you are late on paying or filing your taxes in Georgia is that your account will be subject to fees and penalties.
These fees and penalties will increase every month that you don’t pay off your tax burden in full, and you’ll also be charged interest as your debt accumulates. This interest will compound the longer you don’t pay off what you owe. Considering this, a small tax debt can quickly grow into a major bill if you continue to ignore it.
If you don’t respond to the financial fees and penalties, the state has the authority to use other collection efforts. For example, wage garnishment happens when the IRS or DOR orders your employer to withhold a percentage of your check and remit it directly to the tax agency. A tax lien gives the government a legal claim against your property, and a tax levy gives the GA DOR or IRS the authority to seize your property. The IRS can levy your bank account or take property you own to settle your debt.
Understanding Georgia State Taxes
Everyone who earns an income in Georgia must file state income taxes every year. The amount of taxes you owe will hinge on your federal adjusted gross income and the adjustments available to you. Thankfully, everything you need to file your state taxes will be available on your federal tax returns, your W-2 or 1099 papers, and your social security card.
Once you submit your information to the Georgia State tax agency, you’ll either be issued a refund or asked to pay a sum to the tax agency. If you need any help filing or figuring out your next steps, it might be best to consult with a tax resolution firm for more help.
Types of State Taxes in Georgia
State and federal income taxes are the most common taxes that citizens need to deal with, but you may have other tax concerns and obligations based on your circumstances.
Georgia’s income tax rates range from 1% to 5.75%. Another common type of tax in Georgia is the sales tax, which is charged at 4%. The maximum local sales tax is set at 5%. The average county in Georgia has a combined state and local sales tax rate of 7.4%.
If you own a property, you must also pay property tax on the assessed value of the property. Rates vary, but in GA, the average is 0.92% of the assessed home value.
General Deadlines for Tax Payments
In general, your tax returns and the full cost of your tax payments are due on April 15 of every year. However, depending on your circumstances, you may need to verify when your specific taxes are due.
If you are self-employed or own your own business, for example, you might be expected to make quarterly payments. If you collect sales tax, you may have to remit that even more frequently (typically monthly). If you think you won’t be able to meet the tax deadlines, you might want to file for an extension.
Step-by-Step Guide to Paying Georgia State Taxes
Did you receive a tax bill? It’s important to understand that the IRS or the Georgia Department of Revenue expects you to pay off your tax bill in full immediately upon receiving it. That said, you’ll need to follow the instructions you receive with your notice of your balance due to pay off what you owe. If you’re not sure what to do, we’ll go over the steps you should take below.
What Are Your Options if You Can’t Pay in Full?
Are you worried that you can’t pay off your entire balance in one lump sum payment? Don’t panic! Both the IRS and the Georgia Department of Revenue can offer a solution in the form of an installment agreement. These agreements are essentially monthly payment plans.
You agree to make timely payments on a regular basis, and the tax agency agrees to stop collection efforts. You can request and set up your installment agreement online through the Georgia Tax Center.
What is a Payment Plan? Eligibility Criteria for Payment Plans
IRS installment agreements are similar to Georgia’s payment plans. In order to be eligible for either of these payment plans, a taxpayer must meet the following criteria:
- You owe a tax debt
- All your tax returns are filed
- You cannot pay your taxes immediately
The IRS and Georgia’s Department of Revenue will check your finances to ensure that a payment plan is appropriate for your situation. If the IRS and Department of Revenue determine that you are able to make full payment, you might not be approved for a plan.
One type of payment plan offered by both Georgia and the IRS that you may have heard about before is an Offer in Compromise, which can significantly reduce the total amount of taxes you owe and make repayment easier. Learn more about whether you are eligible for an OIC with the state of Georgia or the IRS with our free whitepaper, “Demystifying the Offer in Compromise: Understanding the Frequently Misunderstood Tax Liability Solution:”
Download Our Free OIC Whitepaper
How to Apply for a Payment Plan
Are you interested in a payment plan? You can apply for one on your own, with the help of a tax advocate, or over the phone with a tax agency representative. To do everything on your own, you’ll need to sign up for online access to Georgia’s Tax Center. Once you have your account set up, you can request a payment plan directly online.
Preparing to Pay
Once you have a payment plan in place, it’s important to prepare to pay on schedule. Missing even just one payment could invalidate your payment plan entirely. Since it is a legally binding agreement, you need to hold up your end of the deal by paying on time every time.
How to Use the Georgia Tax Center to Make Payments
To make a state tax payment, the easiest option is to create an online account on Georgia’s Tax Center website. Once you do so, you’ll be able to use the online site to make payments, ask questions, check your refund status, and complete all your tax needs.
Locations Where You Can Pay Taxes in Person
If you’re not sure how to pay GA state taxes and would rather talk to someone in person, visit one of Georgia’s Department of Revenue regional offices. An agent will be able to assist you with making your payment.
You can also call Taxpayer Services at 877-423-6711 to speak with an agent over the phone about your situation.
Online Payments
The easiest and fastest way to settle your tax situation is to pay GA taxes online through the Georgia Tax Center. You can easily pay Georgia taxes online by either setting up an account or using the number located on your statement letter.
Electronic Funds Transfer and Credit or Debit Card Payments
You can also use the online portal to pay via electric funds transfer and credit or debit card. If you don’t want to set up an account, you can still make a Georgia state tax payment by using the identification payment number on your Statement of Account letter.
Mailing Payments
You can also mail your GA IRS tax payment via check or money order. You will need to have your payment paper and mail it to:
Georgia Department of Revenue
PO Box 740399
Atlanta, GA 30374
To mail a payment for a return that was just filed, use payment voucher 525-TV. Note if you paper or e-filed the return, your tax ID number, and the type of return. Make extension payments with Form IT-560 and estimated quarterly payments with Form 500-ES. There are other vouchers that you may need to use if you’re mailing in payment for a different type of tax return.
How to Ensure Your Payment is Processed Correctly
Knowing how to pay GA state income tax is only half the battle. You also need to make sure that your payment is processed correctly. The last thing you need is for the DOR to credit your payment to the wrong account.
When paying online, make sure that you’re properly signed in and/or that you note the correct numbers from your last state tax notice. If mailing in payments, note your Social Security or state tax account number on the payment.
Resources for Taxpayers Who Need Assistance
Taxes are complicated, yet filing and paying taxes is an obligation for everyone. You may not have the time necessary to spend researching various tax laws, codes, and rules to determine how to navigate your complex tax situation or a tax bill you can’t pay off. In that case, you can hire tax resolution experts to help.
Are You Interested in Speaking with a Tax Resolution Attorney?
Are you currently experiencing a tax situation that you’re not sure how to handle? Have you received a hefty tax bill that you know you’ll be unable to pay? At Wiggam Law, our tax resolution attorneys understand how easy it is to quickly get overwhelmed by a complex tax situation.
We also know how to get you out of deep waters and back onto steady ground. Our team of expert tax attorneys can help you stop IRS and state collection actions, determine your options, set up a payment plan, request penalty relief, and negotiate with tax agencies on your behalf.
If you’re ready to get started on your tax resolution journey, call us at (404) 233-9800 or schedule an appointment online to see how we can help you resolve your tax issue.