ATLANTA, Ga. (WTXL) — Governor Brian Kemp signed a new tax cut and a tax credit bill on Monday that could mean more money in Georgians’ paychecks.
Georgians should see those tax cuts starting next year, meaning approximately $800 for single filers and $1,100 for those filing jointly.
House Bill 593 will raise the amount of money someone could earn before starting to pay state income taxes. It will reduce Georgia's overall income taxes by an estimated $140 million. The standard deduction for an individual will rise from $4,600 to $5,400, while the standard deduction for a married couple filing jointly will rise from $6,000 to $7,100. The tax cut will save individual tax filers up to $43 a year, and married couples filing jointly up to $63.
House Bill 114 would raise the tax credit for adopting a foster child to $6,000 for the first five years after adopting a child. The credit would stay at the current $2,000 a year for any remaining years until the child turns 18.
Both bills passed with bipartisan support.
Kemp, the lieutenant governor Geoff Duncan and House Speaker David Ralston said it was important to return money to Georgians still struggling during the pandemic.
“As we return to normal here in the Peach State and look to fully restore our economy, it is critical that Georgians keep as much of their hard-earned money as possible to revive small businesses and industries still struggling under the weight of COVID,” said Kemp.
There were concerns that tax cuts and credits were not allowed under the American Rescue Plan, but state leaders said the Biden administration assured them it wouldn’t be an issue.
