PERRY, Ga. — The start of the new year brought in lower income tax rates for most Georgians. Gov. Brian Kemp's tax rate cut went into effect Monday, bringing the basic rate from 5.75% down to 5.49%.
The end of January begins tax season, when everyone crosses their fingers hoping for a nice refund. Pitt Chapman, the managing shareholder at C. Snyder Chapman, CPA says Kemp's tax cut it's possible you'll see that.
"The amount of tax you owe will be less, or your refund will be greater," Chapman said.
However, this will count toward your 2024 taxes that you file in 2025.
For the next five years, the tax rate will lower by 0.1%.
Alkeitha Fleming says saving money is always a plus.
"Now because of everything going up it may be a good deal for some," she said.
However, she isn't sure how much the cut will really benefit people.
"If you make $200,000 and there is a one percent cut your savings are more than somebody making $20,000 with a 1% cut," Chapman says.
He says you'll see the biggest impact when you compare the past tax rate to the end goal of 4.99%.
"For the average Georgia couple on Georgia state income tax married making $100,000 a year has seen a decrease in state income tax at that point of approximately $1,370," Chapman said.
The governor is calling on the general assembly to speed up the state income tax cut. He wants to cut the rate to 5.39% this year instead of in 2025. The general assembly starts its 2024 session on Monday.
Chapman says taxpayers should research state tax credit programs like the Heart Credit or Peach Credit. He says every dollar you give to these programs reduces your state income tax by a dollar-for-dollar value.
He also suggests that when you file your 2023 tax return to bring all your documents before going to a tax professional. That's your driver's license, social security card, w-2 form, and copy of your previous tax return.