Social Security News – Social Security Administration announced that recipients will receive an increase of 1.7% in 2013. Some recipient’s increase may be partially or completely offset by increases to their Medicare premiums. Another change that will be effective January 2013 is the amount of taxable earnings subject to Social Security tax will increase from $110,100 to $113,700.


Massachusetts Senior Circuit Breaker Credit – Massachusetts Senior Circuit Breaker Credit is available for seniors age 65 and older that own or rent their principal residence and meet certain income qualifications. The credit is based on real estate taxes paid or rent paid. For 2012 the total income limits are as follows: single $53,000, head of household $67,000 and $80,000 for married filing jointly. Maximum amount of credit which is a refundable credit is $1000. For those seniors that might not file because they do not meet the filing requirements, should consider filing just to get the $1000 refund


Pension Limits for 2013 – New Pension Limits for 2013 have been announced.  The most popular – 401k contribution has been increased from $17,000 to $17,500.  Simple contribution limits have increased from $11,500 to $12,000.  The catch contribution for those over 50 remains $5,500 for 401k and $2,500 for Simples. 


Popular Expiring Tax Provisions – 2013 promises to be an interesting tax year.  As the so called “Fiscal Cliff” looms at the end of 2012 there are over 36 tax provisions that are due to expire.   Those provisions affecting most Americans will be: 

  • Alternative minimum tax ( AMT) patch
  • Mortgage insurance deduction
  • Election to deduct sate sales tax rather than state income tax
  • Above the line deduction for K-12 teacher expenses
  • Deduction for qualified tuition and expenses
  • Reduced Social Security tax rates.





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