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2013 Tax Law Changes and How They Affect You

By - Posted on March 22, 2013

With tax season upon us, there are some changes that are very important to keep an eye on this year. The alterations may have a significant effect on your wallet, so knowing what you will need to pay for could help you better adjust to these issues.

Be mindful that the tax return you file for the 2012 year will have that year’s tax laws in place, and the new changes will affect how the next tax return is determined. These are also figures that only apply to federal taxes, so your state may have additional 2013 tax changes that you will want to keep an eye on.

One of the most important changes is the expiration of the payroll tax deduction. You likely got a paycheck in January and noticed that it was a bit thinner than usual. This is because an additional 2 percent of it was withheld. There is now a Social Security fee of 6.2 percent up to the payroll tax cap of $113,700.

If you attend some type of higher education, keep a close eye on your tuition payments. This is because you can have a deduction for these expenses, as it would affect your income. Remember Omni Financial’s personal loans give active duty military and their families the tuition assistance they need to pay for any education related expenses, including existing student loans.

Couples have an advantage
Any person making more than $250,000, or any couples filing a joint return that make more than $300,000 can’t take every deduction. Despite this, couples can still take a deduction of $12,200 for couples filing for last year’s taxes. This was $11,900 previously.

If you own a home, you may be able to take advantage of your mortgage payments. Premiums for mortgage insurance can be used as deductions on overall mortgage interest, in some cases. Also, if you have children, you will still be able to use the $1,000 Child Tax Credit, as this was extended for the next few years.

The 2013 tax law changes can be jarring for some, and it may affect how they pay for things in the long-run.  Taking some time to contact Omni Financial about these recent tax changes is a good way to ensure financial success in the future. The last thing you want is to be caught flat footed when Uncle Sam comes knocking.

Posted in Financial Tips & Advice