LANSING (WILX)- This year there are changes in state law may result in a lower tax return.
Many low-to-moderate income individuals, families and seniors will likely experience significant changes due to these changes and as a result expected state refunds may be less than in prior years.
The following is a list of the changes that may impact someone's state tax returns. The full list of the changes is detailed on the Michigan Department of Treasury website. (Link below)
Changes that MAY REDUCE your 2012 State of Michigan Income Tax return include:
• Elimination of the $600 exemption for children 18 and under
• Reduction of the Michigan EITC from 20% of the federal to 6%
• Reduction of the Homestead Property Tax Credit
• Elimination of the city income tax credit
• Elimination of the charitable contribution credits
• Elimination of credits for medical savings accounts and college tuition and fees
• Elimination of special exemptions for seniors
• Pension and retirement income is now tax in some instances
• Elimination of tax credits for adoption expenses
If you have any questions regarding how these changes may impact your return, please ask your IRS trained and certified tax preparer.