Treasurer of Towns GOP seeks to change Georgia income tax law

HIAWASSEE, Ga. – Towns County Republican Party Treasurer Harvey Cohen has taken a step in a quest to change state income tax law.

Cohen, a Certified Public Accountant (CPA) of 40 years who practices law tax, reached out to Georgia Senator John Wilkinson and Georgia Representative Matt Gurtler in a letter to state his case.

“Georgia individual income tax law provides for a limited standard deduction which is much smaller than the current federal standard deduction,” Cohen explained. “Georgia individual tax law limits its taxpayers to its standard deduction if that taxpayer claims the standard deduction on their federal tax return. For example, a Georgia taxpayer claiming a federal standard deduction of $24,000 (for a joint return) would be limited to a Georgia standard deduction of $6,000. The result of this tax structure of Federal verses Georgia deductions results, and will continue, in many cases, to result in Georgia taxpayers receiving Federal tax refunds, but owe Georgia income taxes.”

Cohen added that he received a call from a friend who didn’t understand why her daughter and son-in- law owe Georgia income tax, yet are receiving a federal refund.

“In past years, their itemized tax deductions were approximately $12,000 plus, and this year they are limited to the Georgia standard deduction of $6,000 because they are claiming the federal standard deduction of $24,000. The spouses, in this case, are a Cherokee County Sheriff’s deputy and she is a Cherokee County Childrens’ Advocate for the Cherokee County Court System. Neither of them are substantial income earners.”

“Another example of this unconscionable situation is my daughter,” Cohen continued. “Her earnings approximate $45,000, and she owes no Federal income tax, but owes Georgia income tax of approximately $1,800. I have talked to other Georgia CPA s and licensed tax preparers and they concur with my conclusion that Georgia’s tax law is punishing it’s citizens due to it’s individual income tax law’s standard deduction amount vis-a-vis the federal tax law’s standard deduction amount, and because Georgia’s tax law limits the use of deductions to the $6,000 standard deduction if the federal standard deduction is claimed.”

Cohen invited State Senator Wilkinson and State Representative Gurtler to contact him if inclined to discuss the matter further.