As the calendar turns over to another year, once again there are a number of changes that will effect your 2013 finances.

On January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012. As a result, federal income tax rates that have been in effect since 2001 have become permanent and a new 39.6% rate has been added for individuals with taxable income over $400,000 ($450,000 for married couples). The new law does not prevent the employee social security tax rate from returning to 6.2% for all wages paid in 2013, and that rate should be used as soon as possible. The IRS has issued revised withholding tables for 2013 based on the new law. A version based on the pre-2001 tax rates was issued on December 31, but those tables had to be revised now that the 2012 rates are being extended.

The IRS has announced that the business standard mileage rate for 2013 will increase by 1 cent to 56.5 cents per mile. The rate for moving and medical purposes will also increase by 1 cent to 24 cents, while the mileage rate for charitable purposes, which is set by law, will remain at 14 cents.

There have also been changes made to the state per diem and lodging rates that took effect October 1, 2012. The standard lodging rate was set at $77 per day and per diem was set at $46 per day. Maximum lodging allowances in Stark, Mercer, Billings, Ward, Williams, Mountrail, and McKenzie Counties vary from $90-$118, depending on the location and time of year. Per diem rates in those counties are set at $56 for the entire fiscal year. Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained. The U.S. General Services Administration has provided a table that outlines the per diem and lodging rates for FY2013 across the state of North Dakota.

Finally, pension plan limits for 2013 have been announced. The limitation on the exclusion for elective deferrals under Sec. 401(k), Sec. 403(b), and Sec. 457(b) plans increases to $17,500 for 2013. Visit the IRS website for any additional financial information you may need for 2013.