If you live in one state and work in another, you can often find yourself filing tax returns and potentially even paying income tax to both states. This won't quite happen if you live in Georgia and work in Florida or vice versa, though, because Florida has no state income tax, but you may still owe tax to Georgia even if you spend some time in Florida.
If you do live in Georgia and work in Florida and make enough money, you will likely have to pay tax on your Florida income to Georgia.
You Can Owe Georgia State Income Tax on Florida Wages
Florida has no income tax, so if you both live and work there, you'll usually only have to file and pay your federal income tax.
If you live in Florida and work in Georgia, you'll usually have Georgia tax withheld from your paycheck and file a Georgia tax return as well as a federal tax return at the end of the year. You won't be taxed by Florida, since that state doesn't tax anyone's income.
If you live in Georgia and work in Florida, you won't see any Florida withholding on your paychecks, since, again, there's no Florida income tax to withhold. As a Georgia resident, though, you'll still have a Georgia income tax liability if you make a decent amount of money from your Florida job. You'll have to file one of the Georgia state tax forms in the state's IT-511 booklet around the same time you file your federal taxes.
If your company doesn't withhold Georgia income tax, you may be required to pay Georgia estimated tax or owe a penalty. If you are expected to have more than $1,000 in tax owed to Georgia that's not subject to withholding, you must file and pay quarterly estimated tax or face a penalty.
If you live in Georgia and pay tax to another state where you work, you can claim a credit on your Georgia tax, but this does not apply to Florida or other states, such as Texas, that don't tax income.
When You May Not Owe
If you are required to file a federal tax return, you are also required to file a Georgia tax return. You're also required to file if your income is above the sum of the Georgia standard deduction and personal exemption. But you may not owe any tax if your exemption plus your standard or itemized deduction and any credits exceeds your income.
You may still need to fill out a Georgia state tax form to confirm you don't owe anything to the state department of revenue.
Georgia's 2018 Tax Law Changes
Like the federal government, Georgia is making some changes to its tax code effective 2018. Most relevant for individual taxpayers is a boost in the standard deduction, which is rising from $3,000 to $6,000 for married couples filing jointly and from $2,300 to $4,600 for single taxpayers. This may mean you owe less Georgia tax on Florida income or other income.
For tax year 2017, the Georgia standard deduction remains $3,000 for married couples filing jointly and $2,300 for single taxpayers.
- Georgia Department of Revenue: Filing Requirements
- Georgia Department of Revenue: IT-511 Individual Income Tax Booklet
- Georgia Department of Revenue: 500ES
- Bennett Thrasher: New Georgia Tax Legislation: Some Important & Consequential Changes
- Georgia Department of Revenue: 500-EZ Individual Income Tax Return
Steven Melendez is an independent journalist with a background in technology and business. He has written for a variety of business publications including Fast Company, the Wall Street Journal, Innovation Leader and Ad Age. He was awarded the Knight Foundation scholarship to Northwestern University's Medill School of Journalism.