Difference Between State Filing and Federal Filing

tax attorney in georgiaAre you looking for a tax attorney Georgia to explain the difference between filing federal and state taxes?

Paying taxes is frustrating, but it’s even more frustrating if you’re a tax novice. It is even worse when you have to file two different tax reports for the state and the federal government every year. A tax attorney in Atlanta, GA, can help you with the process of filing your tax returns.

But you still need to know the difference between the two! Continue reading the blog post where a tax lawyer Georgia helps break everything down for you.

Why Do We Pay Taxes?

It’s natural to question why taxes are necessary! Taxes are a part of adulthood, but it can be frustrating to see a large portion of your earnings go toward state and federal taxes each week.

Taxes provide the government with the revenue it needs to fund infrastructure that supports its citizens. What is infrastructure? The government pays for services such as the maintenance of roads, highways, public parks, and education. 

If we didn’t pay taxes, our roads and highways would be cracked, and our children would not have access to the education they need.

Why Do We Pay State Income Taxes

An individual taxpayer’s income earned in or derived from a state is taxed by the state. The state pays its bills and provides specific state programs using taxes. For example, your state pays for its public schools’ maintenance, police protection, and welfare benefits from what you pay. 

There is no one tax system in every state because they all have different tax systems. Nine states have flat-rate income taxation, which means all income levels are taxed equally. The state of Georgia is not a part of this, and if you have a higher income level, you’ll be paying a different tax bracket than someone with a lower income level. If you have questions about the tax system, consult a tax lawyer in Georgia.

The tax return must be filed in each state where the taxpayer earned income, but only their home state can tax all of the income. Learn here how an Atlanta tax attorney can assist you if you are having trouble filing your state income taxes. 

Why Do We Pay Federal Income Taxes

The Internal Revenue Service (IRS) collects taxes from taxpayers, businesses, and other legal entities based on their yearly earnings. Therefore, when you pay your federal income taxes, you are paying them to the IRS. Taxation of a taxpayer’s taxable income is applied to all types of income, including self-employment and wages.

The federal income tax bracket differs depending on how much you earn. There are separate brackets for different income levels and filing statuses. The taxable income of taxpayers is based on their bracket. U.S. tax rules follow a progressive system, meaning those in the lower brackets pay less tax than those in the highest bracket.

A tax attorney Atlanta ga, can help you with your federal income tax if you are having difficulty completing your return. Remember, you’re not in this alone! The Law Office of Max Benkel can help you every step of the way when it comes to paying and filing your tax returns. 

Now Let Atlanta Tax Attorneys Help You in the Process of Filing Your Taxes

The process of filing your state and federal taxes can be complex, especially if you do not have a tax lawyer in Georgia to assist you. There are plenty of tax attorneys in Atlanta, but only the best with years of experience can save you from headaches dealing with taxes.

Contact the Law Office of Max Benkel today!

Free Consultation

Let's talk about your needs and how we can help

  • This field is for validation purposes and should be left unchanged.