Bill for income tax break could bring changes for some Georgians
AUGUSTA, Ga. (WRWD/WAGT) - There’s some good news with your taxes for Georgians.
The state Legislature passed an income tax break on Thursday. The bill now goes to Gov. Brian Kemp’s desk for his signature. The bill changes the standard deduction amount the state gives you.
Here is the breakdown:
- Individuals will see that the standard deduction will increase from $4,600 to $5,400.
- Married couples filing jointly will now deduct $700 instead of $6,000.
So how much money are we talking?
The math works out to a savings of about $63 for married couples or $43 for an individual. Overall, it adds up to about $140 million across the state.
But that is where opponents are voicing concerns. That means that is $140 million less in the state budget. Opponents are worried considering the wide-ranging impact of COVID-19 on the state economy and if vital programs will face even more cuts.
Supports argue that Georgians need their hard-earned dollars now more than ever.
There was also concern the state could be penalized and lose federal COVID relief funding by passing this tax break. But the U.S. Treasury weighed in saying these cuts won’t lead to any financial penalties from the federal department.
If Kemp signs it, the changes will take effect next year, so nothing will change on this year’s taxes, but you’ll start seeing the savings in 2022.
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