Michelle Singletary: What to watch for in 2013

I NO LONGER simply say information is power. It's powerful only if it's the right and most up-to-date information. As we start the new year, I thought I would give you a roundup of some personal-finance information you should keep your eye on, as well as highlights from 2012.

* Credit reports. This month, the Federal Trade Commission is expected to release a study on the accuracy of credit reports. Errors in credit reports can cause consumers to be denied credit or other benefits. The credit-reporting industry has maintained that only a small percentage of credit reports contain serious-enough errors to cause harm to consumers. This report will provide an independent look at just how accurate credit reports are.

* Social Security. Look for a number of changes in this benefit program. For some, the news is good. But for others, not so much. There's good news for the nearly 62 million Americans receiving monthly Social Security and Supplemental Security Income benefits. They will have an increase of 1.7 percent this year, according to the Social Security Administration. It's a modest increase compared to the 3.6 percent cost-of-living increase received last year. There was no cost-of-living adjustment the previous two years. High-earning individuals won't be rejoicing in 2013. That's because the maximum amount of earnings subject to the Social Security tax will increase from $110,100 to $113,700. Of the estimated 163 million workers who will pay Social Security taxes in 2013, nearly 10 million will pay higher taxes as a result of the increase in the taxable maximum. One final thing: By March, everyone getting Social Security benefit payments by paper check will need to sign up for electronic payments. If you don't choose an electronic-payment option before the deadline, you'll receive your money on a debit card.

* Medical and dental expenses. If you itemize for tax purposes, you can deduct expenses you paid for unreimbursed medical and dental care for yourself, your spouse and your dependents. But you can deduct only those expenses that exceed a certain percentage of your annual adjusted gross income. For tax year 2012, it was 7.5 percent. For tax years beginning after 2012, the percentage benchmark jumps to 10 percent.

* The Mortgage Debt Relief Act. If you borrow money and the lender then cancels or forgives the debt, you generally have to include the canceled amount as income for tax purposes. At the height of the housing crisis, when foreclosures began a troubling increase, Congress passed a law designed to provide tax relief to folks who had lost their homes. The Mortgage Debt Relief Act allowed people to exclude from income the discharge of debt on a principal place of residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualified for the relief. But the law allowed for exclusion only debt that was forgiven in 2007 through 2012. Unless Congress acts, the tax break no longer will be allowed.

* Improved transparency. Starting in 2012 but continuing this year improved information will be made available to consumers. Last year, the Department of Education and the Consumer Financial Protection Bureau pushed colleges to provide better student-loan information to students and their families. The watchdog agency also opened a student-loan-complaint system and one to handle individual complaints about credit bureaus. For information on any of these issues, go to consumerfinance. gov.

Most notably, people participating in workplace-retirement plans will receive better information about the fees they pay. Disclosure rules implemented last year by the Labor Department should help workers and the companies that provide retirement plans understand the fees charged to, or deducted from, individual accounts. If you have a 401(k) or similar plan, you should have begun receiving detailed information tied directly to the fees you have paid.

So in 2013, you should get a full year's worth of detailed fee information. When you get the information, don't ignore it. Review it. Fees typically run 0.5 to 2 percent a year. As you review the fee information, compare it with the various investment offerings in your retirement plan.

Personal finance can be complicated. So resolve in 2013 to stay informed.