You submitted your tax questions to us and we've got the answers from CPA Terry Parker.
Q: How does the new law that Governor Deal signed affect our 2017 taxes? If we have filed already should we refile?
A: No, you don't need to refile. The taxes, they did two main things dealing with individuals. They lowered the rates from the higher rates from 6 percent to 5.75 percent and that is effective in 2019. Georgia has not changed their standard deductions for many years and they increased their standard deduction and that's effective for 2018, but there's nothing that affected for 2017.
Q: I sold my house this year. In terms of taxes, how much of the proceeds would I be expected to pay in taxes?
A: If you are single and you have sold your house, but you have $250,000 of gain or less, there's no tax. If you're married, filing joint and you have $500,000 or less of gain, then there is no tax. Above those numbers you would pay capitol gain tax.
Q: I underpaid my income taxes due to lump sum payment of SSA disability and a early 401K withdrawal. Will I be charged the under payment penalty?
A: That's really two questions. An individual who pays through withholdings and estimated tax payments, taxes in 2017 equal to or more than their total 2016 taxes will not have an under payment penalty or should not have an under payment penalty. So he'll probably be fine in that situation. The other question is you mentioned something about a 401K early withdrawal, now that's a different issue because if you withdraw money early, before age 59 and a half then there's a 10 percent penalty for early withdrawal and that has nothing to do with under payment penalty. He would be subject to that.
We hoped that helped answer some of your questions and if you have anymore, email us your questions you need answered this tax season to eyewitnessnews@13WMAZ.com