Tuesday, August 13, 2013

Confused by the N.C. tax law changes? This will help

The N.C. General Assembly made so many changes to the tax code last session that most of us are still trying to figure out exactly what it all means. And, if you're anything like me, what you're really wondering is: did they figure out a new way to stick it to me come tax time? Help is on the way for confused taxpayers in the form a new online summary of the tax changes, courtesy of the N.C. Association of Certified Public Accountants.

The summary, in an easy-to-follow chart format, lays out all the changes. A couple have already come to the notice of Observer readers, who wrote me after my broader story about the tax changes was published last Sunday. Several seniors wanted to know why under some scenarios retirees were seeing tax hikes. No changes were made to the way Social Security is taxed, but you'll note from the chart that a deduction for the first $2,000 of private retirement income such as IRAs or 401ks is going away. Also noticed by readers: no more deducting medical expenses -- something that could have an impact on seniors living in nursing facilities who receive thousands of dollars worth of medical care annually. And of particular interest to small business owners, the deduction for the first $50,000 of net business income -- $100,000 for couples filing jointly -- also goes away.

I suspect there are many more taxpayers who will get lowered bills than those who will see increases. Still, there's lots to think about with the new tax law. Bonus note: the chart also very handily lets you know when the various changes actually take effect.


James Reynolds said...

Thanks for the information. I've gotten myself into a little bit of trouble with taxes and I'm researching the internet for the best course of action to take. I'm trying to see if it is possible to get myself out of trouble or if I need to hire a tax franchise company to aid me.

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