Nonresidents or part-year residents may still have Georgia state tax obligations. This may require filing a Georgia state income tax return and paying Georgia income taxes.
Part-Year Residents
Part-year residents need to file a Georgia state income tax return if they are required to file a federal income tax return. This is true regardless of what state your income sources are located in.
You may not be required to pay any Georgia state income tax, but you will still need to file a return as a part-year resident.
Non-Residents
Non-residents may be required to file a tax return if they work in Georgia or receive income from Georgia sources. If you meet one of these requirements and are required to file a federal tax return, you will also need to file a Georgia state tax return.
This situation can apply to any of the following cases:
- You live in a different state and commute to Georgia to work.
- You have Georgia lottery winnings.
- You have income from a Georgia flow-through entity, such as an S-Corporation, Partnership, LLC, Trust, or Estate.
- You receive rental income from Georgia sources.
There is an important exception for legal residents of other states. If your only activity for financial gain in Georgia is as an employee and your Georgia income does not exceed the lesser of 5% of your total wages or $5,000, you don’t need to file a Georgia tax return.
Consequences of Unfiled Georgia Tax Returns
If you fail to file a Georgia state tax return, you could face the following consequences:
- Interest that accrues each month at the Federal Reserve prime rate plus 3%.
- Late-filing penalty of 5% of the tax due per month, up to a maximum of 25%.
- Late-payment penalty of 0.5% of the tax due per month, up to a maximum of 25%.
The Georgia Department of Revenue may pursue tax liens or levies if you fail to pay your back taxes, penalties, and interest. Contact a Georgia tax attorney to get help resolving tax problems caused by unfiled Georgia state tax returns.
Get help with Georgia state tax problems by calling The Gartzman Law Firm at 770-939-7710. We can listen to your concerns and help you find the best tax resolution strategy for your case.