COLUMBUS, Ga (WRBL)- All taxpayers who file their taxes may not only receive a federal tax return, but could also receive a tax return from the state, if you have taken out the proper withholdings from your annual income.
“You need to get it filed on time because there is a big penalty for you not filing on time,” said Steve Brown of Mr. Tax of America.
There are at least 43 states who requires you to pay state taxes. Federal and state income taxes both apply a percentage rate to taxable incomes.
Each year on your W-4 form you are asked how many dependents you have which determines your federal and state tax deduction, however if you do not take out the proper with holdings you can possibly owe the government instead of receiving a return.
“Most people don’t owe the state at all, a lot of times its under withholdings we’re seeing a lot of cases when they changed the withholding rules last year the table in many cases don’t take out enough tax especially if you got a husband and wife working,” said Brown.
If you do not receive a tax return and still must owe the state, there are multiple ways you can pay it back.
“You can basically pay it all at once and send them a check or they do have an installment agreement process which is more detailed than the federal so if you do go with an installment agreement you can get it set up it just takes a little more work for the state because the federal is automatic,” said Brown.
The IRS announced that they are extending the deadline to file taxes from April 15 to July 15, which will provide taxpayers an extra three months to file their taxes. The extension comes as a result of the ongoing coronavirus pandemic.