Consumer

Tax code changes for 2013 tax filing season

Thursday, January 31, 2013

Some changes in tax codes could put more money in some people's pockets. What you need to know before you file!

Sixth and seventh-grade math teacher Rosalind Ali knows spends hundreds of dollars each year on supplies for the classroom.

"Especially with math, if they can connect it to something or an experience, they are more likely to remember it and the impact is worth the cost," Ali said.

Ali was glad to hear a tax deduction offered to teachers will continue. "The deduction is a good thing. It would be nice if it were more but we'll take whatever we have," Ali said.

"If you are a teacher and you've got some out-of-pockets that the school didn't pay for that you're using as educational supplies in your classroom, you can deduct $250 worth of those supplies," Joe Roznai, certified public accountant, said.

Roznai says he's answering a lot of questions this year about changes in tax codes. Popular deductions that were extended include Adoption Tax Credit, Child Tax Credit, and Teacher Classroom Expense.

Roznai says many of his clients will benefit by the alternative minimum tax adjusted to lessen the impact on the middle class. The exemption was raised so that the first $50,000 earned for individuals and $78,000 for joint filers are not subject to the tax.

"For most of my client base it was $5 to $7,000 worth of difference if the patch went in or didn't go in. And most if those people couldn't afford the $5,000 in tax. That's a lot of money," Roznai said.

Rob Paddor is a small business owner who hopes the new tax guidelines will ultimately help his business and the economy as a whole.

"What I love is that these rates are locked in for everybody as opposed to kicking the can down the road for a couple of months or six months or a year," Paddor said.

(Copyright ©2014 WLS-TV/DT. All Rights Reserved.)

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