PRESIDENT’S MESSAGE: Like it or not, you have to pay your taxes. The trouble is that understanding taxation requires more than a genius mind. Even Albert Einstein quipped about figuring out taxes, “This is too difficult for a mathematician. It takes a philosopher.”

So, if you are wading through reams of paperwork, trying to make sense of all the mumbo jumbo, don’t get frustrated — even Einstein needed help.

What taxes will go up and what kinds of tax breaks for small business can you expect to see extended in 2013? As always, that answer “depends” on who you are and what type of business you have. The good news is, according to the Small Business Administration, 97 percent of small businesses will not see their income taxes go up. In addition to this good news, the package of tax breaks that small businesses enjoyed in 2012 will be extended through 2013.

However, for some, income taxes will go up in 2013 — small businesses that have a pass through structure — an LLC, S-Corp, Partnership, or Sole Proprietorship — may be affected by the increase in income tax as whatever profits the business takes in translates into their income. However, this will only affect those in the highest income bracket.

Payroll taxes will go up in 2013 — the previous Social Security payroll tax rate of 4.2 percent will revert back to 6.2 percent on the first $113,700 in wages. For those of you that are calculating your own taxes for employee payroll, please be sure to check this out.

Calculating a home office deduction is simpler — claiming a deduction for a home office used to require business owners to take precise measurements, perform complex calculations, and fill in 43 lines of information. Happily, the IRS has unveiled a simpler option for 2013, and all it requires is that the person claiming the deduction multiply the square-footage of their home office by $5 — the maximum deduction is $1,500.

There are many other aspects of taxes, such as Medicaid tax, filing quarterly 1040ES, R&D, etc. that could affect your taxes. If you have a business, regardless of size, I highly recommend you seek professional assistance for your taxes, but especially this year. Substantial changes can lead to incorrect filing — either taking too much of your money, or, unfortunately, not enough. Either is not good.

If you don’t have a tax professional, go to the chamber’s website at midcoastmaine.com, select the business directory, click on financials, and then tax. You’ll find 15 highly reputable firms throughout the Mid-coast region that will be happy to help.

In closing, I’d like to leave you with a quote from Herman Wouk; I think Herman might be right when he states, “Income tax returns are the most imaginative fiction being written today.” Hopefully your story has a happy, positive ending.

UPCOMING EVENTS: Business Success Seminar: “How to become a train friendly destination and region,” Feb. 20, 11:30 a.m. to 1 p.m., at Inn at Brunswick Station, 4 Noble St., Brunswick. Steve Grasso, president of North American Traveler, is the speaker. Free, but you must register.

February’s Chamber After Hours is at Artforms, 128 Maine St., Brunswick. Tours of the production facility, music, refreshments and networking are all part of the evening. The date is Feb. 27, 5 to 7 p.m.

Members of Southern Midcoast Maine, Greater Freeport and Yarmouth chambers are invited to make new connections at a networking event hosted by Linda Bean’s Maine Kitchen and Topside Tavern, 88 Main St., Freeport. The event is March 6, 5 to 7 p.m., and includes refreshments and live music.

“What You Don’t Know About Copyright & Intellectual Property Rights Can Hurt Your Business” is the Business Success Seminar on March 6, 11:30 a.m. to 1 p.m. The seminar is sponsored by Eaton Peabody and Just Write Books at the Priorirty Business Center, 2 Main St., Topsham.

MEMBERS IN THE NEWS: SMMC welcomes A Plus Party Rental, Tech Air Connections, LLC and the Bath Golf Club to its membership. To discover more about these chamber members, go to www.midcoastmaine.com or download MyChamberApp for use on your mobile phone or tablet.

The chamber proudly serves 740 businesses and organizations in the following communities: Arrowsic, Bath, Bowdoin, Bowdoinham, Brunswick, Dresden, Edgecomb, Georgetown, Harpswell, Phippsburg, Richmond, Topsham, West Bath, Westport Island, Wiscasset and Woolwich.

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