Moved...owe state tax in Ga if no income?

[peggster]

What is the name of your state (only U.S. law)? Georgia

Moved Oct. 2006 from FL to GA. Had income in FL & filed Federal taxes. Had no income in GA (unemployed since 2006 til recently). Revenue Dept. says we owe state taxes in GA even with no income in GA....is that possible? Doing worksheet we didn't think we did. Initially Rev. Dept said we owed state tax for entire amount we'd made in FL, once we responded, they reduced it I'm assuming to the 3 mos. that we lived in GA. Thank you for your response.

 

[davew128]

What income did you earn after you moved to GA?

 

[tranquility]

I agree. Georgia is a tax credit state. Since FL has no income tax, all the income earned while a part-year resident in GA is taxable there.

 

[LdiJ]

I agree. Georgia is a tax credit state. Since FL has no income tax, all the income earned while a part-year resident in GA is taxable there.

However the OP stated that they had no income while they were living in GA...so that is a little confusing.

Maybe the OP is forgetting about unemployment compensation received in GA?

 

[davew128]

Willing to bet the OP filed a Fed return with a GA address for that year and didn't file a p/y return showing no GA income after moving there, and the GA DOR is seeing the GA address and saying hey you lived here, where's the tax?

 

[tranquility]

I wasn't going to answer as there was clearly not enough information. I could have asked, but I'm still a bit worn out from the season. (Funny, even though long gone, it still affects.) The real answer is, who knows? I suspect there is a return and some tax due, but, it can very easily be no tax or return.

Does someone want to develop the facts?

 

[OHRoadwarrior]

I would file GA tax return, showing no earned income for GA. You will need to submit your FL w-2 and it hopefully has a FL address for you and the company. Include a written statement explaining why the income was not earned in GA. Include contact info for the company you worked for in FL.

 

[davew128]

I would file GA tax return, showing no earned income for GA. You will need to submit your FL w-2 and it hopefully has a FL address for you and the company. Include a written statement explaining why the income was not earned in GA. Include contact info for the company you worked for in FL.

Have you ever even prepared a tax return?

 

[peggster]

More info

Thank you all for your input. I will include more info.

As stated, we have been UNEMPLOYED with no compensation since Oct. 2006& moving to GA (rural town/recession...unable to find work). We did file our Federal taxes with our FL addressed W2, FL company, however from our GA home address. WE MADE NO INCOME WHATSOEVER IN GEORGIA UNTIL THIS PAST MONTH (actually haven't been paid yet). I used Turbotax to do my Fed. taxes that year & apparently was not instructed to file a state tax form (I can't remember now but have no copy in my file & I save EVERYTHING...did file for a few following years due to bank interest I had to pay tax on).

In hindsight, if state taxes are owed for those 3 months, we certainly would have postponed moving until end of year as nothing was deducted from the income in FL to pay for these taxes & they are now asking for $2000 plus $1000 in penalties & late fees (they wanted $17,000 until I wrote them the explanation....either way....we haven't got the money)! WE'VE BEEN OUT OF WORK FOR 4-1/2 YEARS DUE TO MOVING TO A RURAL AREA WITH NO WORK, ECONOMY & NO JOBS, MY HUSBAND IS RETIREMENT AGE & I AM CHRONICALLY ILL & UNABLE TO WORK....WE HAVE EXHAUSTED OUR SAVINGS WITH ALL THIS & CAN'T SQUEEZE OUT ANY FOR TAXES! My husband just got a job 1-1/2 hrs away from our home & we are now living in a campground just to have an income. Don't know what to do or enough about GA tax laws. When we got this letter, my husband & I both read instructions & did worksheet & both understood it to be that no income in GA, no taxes (but I have to say it was kinda confusing).

Thank you again for your advice & opinions. I need to get to the bottom of this, needless to say. It's a worry we don't need right now. Thank you.

 

[OHRoadwarrior]

Have you ever even prepared a tax return?

Not only have I prepared hundreds, I have prepared multi-state returns under similar circumstances.

They need clarification of the issue in writing AND an impartial way to verify accuracy of the info, should they choose to do so. Some states now require a statement on company letterhead, in cases where tax payments were previously made, or that a 1040X be issued adjusting the state taxes were paid to. Ad FL has no income tax, I do not believe it will go to that extreme.

 

[tranquility]

"Compensation" is not the only type of income. You said you had savings, did you earn anything on them? Did you get any unemployment compensation? Did you withdraw anything from a tax-favored account?

What did your federal income tax return report as income?

 

[davew128]

Not only have I prepared hundreds, I have prepared multi-state returns under similar circumstances.

They need clarification of the issue in writing AND an impartial way to verify accuracy of the info, should they choose to do so. Some states now require a statement on company letterhead, in cases where tax payments were previously made, or that a 1040X be issued adjusting the state taxes were paid to. Ad FL has no income tax, I do not believe it will go to that extreme.

And all this time I thought a mere part-year return would have sufficed.

 

[peggster]

We did have savings from selling our house & reported to Fed. taxes about $2000 interest, so maybe I do owe on that??? There was no unemployment compensation.

With my letter of explanation to GA Dept of Revenue, I included a Form 500 w/schedule 3 showing no GA income, however in their reply they filled in that we owe taxes anyway. They showed an income for GA, which there was none.

I did look at the W2 again & because we had moved to GA & had the employer send them there, they do show the GA address rather than FL, however the company address is FL. Could that be the difference? Maybe they think we lived in GA & worked in FL?

Thanks again for all your efforts to help me in this dilemna...it is very much appreciated.

 

[LdiJ]

We did have savings from selling our house & reported to Fed. taxes about $2000 interest, so maybe I do owe on that??? There was no unemployment compensation.

With my letter of explanation to GA Dept of Revenue, I included a Form 500 w/schedule 3 showing no GA income, however in their reply they filled in that we owe taxes anyway. They showed an income for GA, which there was none.

I did look at the W2 again & because we had moved to GA & had the employer send them there, they do show the GA address rather than FL, however the company address is FL. Could that be the difference? Maybe they think we lived in GA & worked in FL?

Thanks again for all your efforts to help me in this dilemna...it is very much appreciated.

That could be the problem. They may be accepting that you didn't move to GA until October but they may be trying to classify your FL W2 as being an entire year's worth of income with 3/12 of that income being earned while a resident of GA.

I would suggest consulting a tax professional in GA. I know that will cost some money but if they can resolve it then it would be money well spent. The other alternative is to see if GA has a taxpayer's advocate who can help you with this.

 

[Dillon]

US Obligations exempt from State Taxes

What is the name of your state (only U.S. law)? Georgia

Moved Oct. 2006 from FL to GA. Had income in FL & filed Federal taxes. Had no income in GA (unemployed since 2006 til recently). Revenue Dept. says we owe state taxes in GA even with no income in GA....is that possible? Doing worksheet we didn't think we did. Initially Rev. Dept said we owed state tax for entire amount we'd made in FL, once we responded, they reduced it I'm assuming to the 3 mos. that we lived in GA. Thank you for your response.

US Gov. Obligations are exempt by law from state and local incomes taxes.


US Code - TITLE 31 > SUBTITLE III > CHAPTER 31 > SUBCHAPTER II > Section 3124 - Exemption from taxation

(a) Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State.


It's my understanding, Federal Reserve Notes are considered U.S. Obligations - Go Figure

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