Changes coming to Michigan taxes
- Posted on June 4, 2011
Just came back from attending a seminar on the new Michigan corporate and individual income taxes and wanted to share what will be coming down the road for us. The new tax laws are effective for January 1, 2012. I think almost everyone who files a state income tax return (business or individual) will be impacted in some way from this new legislation. Now is the time to take a look to see what those impacts will be and put some planning into effect.
Individual Taxes
Gone are the days of credits. The Homestead Credit (Property Tax Credit) has changed. Most of the tax credits are now gone; i.e., public donations, city taxes paid, homeless shelters, energy efficient appliances and home improvements, and vehicle donations. There will no longer be an extra exemption for children under the age of 19 or seniors over the age of 65. Personal exemptions will be increased to $3,700 . The earned income credit is gone. Retirees will have the biggest change in pension exclusion as this is now based on age and amount of distributions.
I am offering a free analysis to those interested in learning what the impact of all this will mean to their tax position come 2012. Please contact me at cathi@cslaccounting.net or 866-300-4618 to set up an appointment.
Business Taxes
The Michigan Business Tax will be a thing of the past. (Yea!) It has been replaced with the Michigan Corporate Income Tax. At this time, the “C” corporation is the only entity required to file. This is the time for those companies affected to take a look at their business structure and put some planning into action.
Again, I am offering a free analysis to those interested in taking a look at some planning options. Our state legislatures have given us the gift of 6 months to prepare so let’s take advantage.
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- Posted on July 6, 2011
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