The Peck Group LC
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We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

Work in Georgia but live elsewhere? Beware of tax dilemmas

On Behalf of | Jun 10, 2020 | Tax Law |

Even in our uncertain economic times, Atlanta remains a booming city in the southeast. As such, Atlanta lures many workers from other areas of the country. There are many individuals who are residents of other states who earn a significant amount of their wages here in Georgia. They may be contract workers picking up the slack at a health care facility, e.g., a locum tenens position. Construction workers also may be on a job here in the Atlanta area for a good portion of the year.

But what tax implications does that have on nonresidents? As it turns out, it can be considerable.

You are taxed on all income

It’s not just the money you receive from your paycheck. Your taxable income includes:

  • Sick pay
  • Holiday pay
  • Vacation pay

This is covered under regulation 560-7-8-.01(b)(1). However, there are some exceptions, like the 5% covered in Section 48-7-1(11)(A) of the Georgia code.

Under Georgia regulation 560-7-8-.01(b)(1), nonresidents must divide the total days they worked here in our state by the number of days worked elsewhere to ge the ratio for their Georgia income.

If, however, the worker was only employed in our state for the duration of a tax period, that ratio is then 100% and Georgia tax laws definitely apply.

Confused yet? It’s understandable

Determining tax obligations for workers who move between states during the tax year is certainly more complex than it is for those in the state who work a single job year-round. That also means that the probability for making an egregious tax error is much higher.

Ignorance of the law has never been a viable defense. Running afoul of federal or state tax laws can get you into a lot of hot water. That’s not something that you ever want to have to defend during an audit or in a courtroom. That’s why we encourage workers to learn all they can about their tax obligations and liabilities.

Get your questions about Georgia and federal tax laws answered now before the extended deadline in July is upon us. Armed with the knowledge you seek, you can remain in full compliance with all federal and state tax statutes.

We insist that your taxpayer rights are protected and your options are known.

Our services are confidential and are protected under the attorney-client privilege as allowed by law.