I was shocked to see my state taxes will go from a refund of $714 in 2013 to paying the state $943 for 2014 on an income of $5,000 less than last year. I couldn’t believe it and consulted a CPA to verify my numbers. They were correct.
He explained that the 2014 North Carolina tax changes took away personal exemptions (I have a dependent son) but did allow the $15,000 exemption. However, that didn’t cover my son, so that added to my taxable income.
Then to make matters worse, the $2,000 exemption for company pensions (total of $4,000 since my wife has a pension as well) was not allowed any longer. Our medical costs were also no longer exempt. Just think what the loss of medical exemptions will do to those with significant medical costs, as well as those with multiple dependents.
These changes have cost us $1,657 in additional taxes ($714 plus $943), and as retirees on a fixed income we will now have less income to spend. We need to challenge the GOP to change these tax laws to be more fair to retirees and the poor.
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Robert Hauver, Cary