Stateside: Changes to tax refunds may come as a surprise to some
The following is a summary of a previously recorded interview. To hear the complete segment, click the audio above.
For those who have not yet completed your 2012 tax returns- brace yourselves.
In 2011 Governor Snyder signed a tax overhaul package that included $1.4 billion in additional income taxes and $1.7 billion in business tax cuts.
Detroit Free Press financial writer Susan Tompor spoke with Cyndy about the various changes in taxes.
“If you had the Michigan Homestead Property tax, the state sent out 500,000 postcards to warn people that this tax break has changed. The full credit is $1,200 but there are some new numbers that are going to faze some people out of this credit. The homestead credit would vanish if the total income resources are more than $50,000," said Tompor.
Tompor continued to note the change in unemployment compensation.
“There’s also a change in the unemployment compensation. That continues to be taxable in Michigan but there’s no longer a special exemption for tax payers where their unemployment compensation exceeds 50% or more of their gross income.”
“For taxpayers born in 1945 or earlier, there is no change in that Michigan Income Tax law regarding pensions. But for others, the rules are pretty complicated…”
For more of Tompor’s interview, listen to the podcast above.