MLive.com: What to know about Michigan's changing tax structure before filing your returns

By Ben Freed Business Reporter
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Posted on Fri, Jan 11, 2013 : 12:06 p.m.

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Free volunteer-based tax preparation is available from the IRS for those making less than $51,000 or who are over the age of 60.

Angela Cesere | AnnArbor.com file photo

Many of the changes mandated by a major 2011 tax reform package signed into law by Gov. Rick Snyder will begin affecting Michigan taxpayers on their 2012 returns, according to an MLive report.

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The package included an approximate increase of $1.4 billion in additional income taxes balancing out nearly $1.7 billion in business tax cuts. Major changes include the reduction or elimination of the Homestead Property Tax credit and a significant increase in the taxation of private pension income.

Michigan’s base income tax rate for 2012 decreased from 4.35 percent to 4.33 percent as it makes its way down to 4.25 percent in 2013. However, due to loss of exemptions and credits, many taxpayers are expected to pay a higher bill to the state.

Click here to read the full story from MLive.com.

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Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Reach out to Ben at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2

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