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Thursday
Dec 18th

Champion: Take advantage of new tax breaks

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senator bobbyState Senator Bobby Joe Champion (DFL-Minneapolis) urges area residents to file their tax returns now to take advantage of tax cuts that were passed by the Legislature just over one week ago.

"For those who waited to file their tax returns, the Minnesota Department of Revenue says they can now file with forms and software that include the new tax law changes passed on March 21," Sen. Champion said. "Many area residents will benefit from the tax cuts and I urge you to claim the tax cuts and credits you are eligible for."

According to the Department of Revenue, about 300,000 taxpayers qualify for the new 2013 middle-class tax breaks passed by the legislature and signed into law. Some changes include:

• Working Family Credit for taxpayers earning up to $47,000.

• Mortgage Insurance Deduction for taxpayers earning up to $110,000.

• Student Loan Interest Deduction for students who paid student loan interest. You may deduct up to $2,500 of the interest if you are a taxpayer earning up to $75,000.

• Teacher Deduction for K-12 teachers or school employees who bought classroom supplies with their own money can deduct up to $250 of their purchases.

• Employer Provided Assistance for those who employers helped with college or post-secondary training, adoption and/or transit expenses.

• Education Savings Account for those with a child in grades K-12 who used distributions from an education savings account to pay for their education.

• Tax-Free IRA Distributions for those who are 70 ½ or older and made a contribution to a qualified charitable organization directly from their IRA.

• Mortgage Debt Forgiveness for homeowners whose lender agreed to accept less than they owed in a "short sale" or foreclosure of their home can exclude the amount of debt forgiven by the lender.

If you've already filed your return, the Department of Revenue will review it and if you qualify for a new deduction or credit, they will either adjust your return, will request more information from taxpayers to adjust your return or notify you if you need to file an amended return.
 

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