Tax changes in 2013

There are two big changes to look out for in terms of taxes in 2013.

According to Bob York, a tax advisor at the Indiana Small Business Development Center in South Bend, those are an increase in social security withholding and a later start to processing.

For most wage earners, social security withholding has increased by 2%. This tax holiday was not extended by recent tax legislation.

"The one big change is the social security tax is going to go up 2%, it's really going back to what it was 2 years ago. Your taxes will increase [in] January 2013," said York.

And you'll see a later start to processing those taxes in 2013. The IRS will not start processing 2012 tax returns until January 30 of this year. That's pushed back from years past, mostly because of uncertainty in how tax legislation would turn out, according to York.

"It's kind of a newsworthy item because there's a lot of people who file early, want to get it done early, so this is going to slow it down a little bit," said York.

"The fear was we were going to have a lot of tax changes, more than we could probably handle. But in effect, what they really did was extend everything. [There were] very few changes."

Taxes cause anxiety for a lot of people, so the ISBDC is hosting a $10 class on Thursday to help reduce those fears and answer basic questions about taxes. For instance, how much are we really being taxed? How can I deduct in-home costs for small business expenses? And what are my chances of being audited by the IRS? The class will take place Thursday at the Chamber of Commerce building in downtown South bend from 11 a.m. to 1 p.m.

If you have other tax-related questions you can call Bob York at the ISBDC for free advice at 282-4350.

And if you earn under $57,000 annual income, you can file for free online at in.gov/dor and select INfreefile (Individual Income Tax).


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