Just got our first new Income Tax hit as an IL resident

[FINFAN]

We get paid on the last day of the month...once a month. Our income is $42 less than usual...gee I can't WAIT until the SS tax credit is removed next year..

 

[Melynny]

I am so bummed! I work in Missouri, but LIVE in Illinois.. it looks like I am going to have to put some money into savings, to make up the difference.

 

[sam_gordon]

Out of curiousity, did you happen to compare line item to line item between your January paystub and your December paystub? Which line is different?

 

[Gr8t Fan]

Yep Pam, ours was $39 less than last check. I actually thought they were going to double dip this check because they said the increase would be retroactive to January 1st and we'd already received a check on the 15th (without the increase), but they spared us for now. I'm sure they'll get us when we're least expecting it.

Makes Florida look better and better huh?

 

[Gr8t Fan]

Out of curiousity, did you happen to compare line item to line item between your January paystub and your December paystub? Which line is different?

Federal withholding is higher this year because the Making Work Pay credit expired, and state withholding has gone from 3% to 5%.

 

[JKMJ441724]

Our income is $42 less than usual...gee I can't WAIT until the SS tax credit is removed next year..

That's $42 less for DISNEY!!

 

[daughtersrus]

We get paid on the last day of the month...once a month. Our income is $42 less than usual...gee I can't WAIT until the SS tax credit is removed next year..

Did that include the 2% increase for the entire month?

My DH is paid weekly (as he says, very weakly ) We figured that his first check was going to have about double that since they have to go back to Jan 1st. If they take it all out in the check that he gets Friday, it's really going to kill us. Not only will it be the extra tax for the entire month but his union dues also come out the first Friday of the month an that's $78.


Each week his check is a different amount so it's hard to compare week to week. He's paid "book time" which is pretty much like commision. Lately though, they've been so slow that everyone is getting "guarantee" which is 34 hours paid as long as you work 40. They laid a few semi-skilled guys off on Friday. I feel bad for them but we're hoping that this means the journeymen will have more work and he'll get back to normal. He's been there over 25 years and is too old to go to another dealer and loose all of his vacation time and start off at the bottom of the senority list. I just sent him a text and he said today it busy. Not sure if it's because everyone's in a panic about the storm and wants to be sure that their car is running right or if it's because they have less guys there working today. I guess tomorrow wil be the test when the 2 journeymen that work Tue-Sat are in.

 

[sam_gordon]

Federal withholding is higher this year because the Making Work Pay credit expired, and state withholding has gone from 3% to 5%.

I get the state withholding, but are you sure the MWP credit affects your paycheck? I wonder if that's just part of filing taxes and not affecting actual paychecks.

 

[FINFAN]

Sorry, I don't have the breakdown yet, just verified our direct deposit. Work no longer sends paper deposit verification, will have to wait until I can pull the info up. We only get paid once a month so I am assuming it is the 2% for the entire month, especiallysince we get paid on the last day.
JKMJ441724...Disney? I am just trying to keep gas in the car/heat in the house/food on the table and college debt down..but right now losing another $500 a year( take home) to taxes stinks, and that will be more like $2000 next year!

 

[Gr8t Fan]

I get the state withholding, but are you sure the MWP credit affects your paycheck? I wonder if that's just part of filing taxes and not affecting actual paychecks.

Well my federal taxes definitely went up (on my 1/15 paycheck) and I didn't change my withholding, so I assumed it was because of the expiration of the MWP credit. Maybe it's something else. They will find a way to take it from me one way or another.

 

[daughtersrus]

Sorry, I don't have the breakdown yet, just verified our direct deposit. Work no longer sends paper deposit verification, will have to wait until I can pull the info up. We only get paid once a month so I am assuming it is the 2% for the entire month, especiallysince we get paid on the last day.

If that helps you determine if it's for the entire month or not, running the numbers quickly a $42 increase in taxes at 2% comes to roughly an income of $2100 before taxes or $525 a week.

 

[sam_gordon]

Well my federal taxes definitely went up (on my 1/15 paycheck) and I didn't change my withholding, so I assumed it was because of the expiration of the MWP credit. Maybe it's something else. They will find a way to take it from me one way or another.

My taxes went up also.

My fed withholding on the check I received 12/24 was 3.3% of my gross. My fed withholding on the check I received 1/7 was 3.9% of my gross.

BUT,

My Social Security was 5.8% of my gross on 12/24. It was 3.9% on 1/7. Between those two (Federal Withholding & Social Security), my check went up $33!

 

[DisneyCrafter]

It's a good thing my DH got a raise, as measely as it is, it allowed us not to be affected by this awful income tax hike! Instead of $1500 extra a year, he's taking home $600 a year.

We had been anticipating using the extra for Disney World this year. Oh well, at least we have enough money for bills, mortgage and food!

 

[sam_gordon]

It's a good thing my DH got a raise, as measely as it is, it allowed us not to be affected by this awful income tax hike! Instead of $1500 extra a year, he's taking home $600 a year.

We had been anticipating using the extra for Disney World this year. Oh well, at least we have enough money for bills, mortgage and food!

No offense, but it sounds like you didn't do your math right when you were planning for the raise (or I'm missing something). You expected him to bring home $1500 and instead it's only $600? If that's all going to taxes, that's a 60% hit. Either the raise isn't as big as you thought it was or something else is getting the money (401K? Health Insurance? Dental Insurance?).

 

[Bbbethei]

No offense, but it sounds like you didn't do your math right when you were planning for the raise (or I'm missing something). You expected him to bring home $1500 and instead it's only $600? If that's all going to taxes, that's a 60% hit. Either the raise isn't as big as you thought it was or something else is getting the money (401K? Health Insurance? Dental Insurance?).

Actually, those numbers make perfect sense. In IL, our state income tax just went from 3% up to 5%. Thanks to the increase, the salary only went up by $600 rather than $1500.

Trust me, I didn't enjoy that tax increase on Friday either! It's quite short-sighted. I'm going to cut back my spending by at least that much, which is only going to make the economy even worse.

 

[Anjelica]

I've really come to dislike the government in the state of Illinois over the last few years even more so than before. They raise personal income taxes AND corporate taxes (apparently they must think we have to many businesses in the state of Illinois and need to thin the herd a bit). Then they don't cut spending and "allow" for it to be raised 2% each year till I believe 2015. It is insulting to every taxpayer in this state to ask us to continue to pay for their unending spending with no forseeable future of spending cuts on their part.

 

[Anne34]

We've lost quite a bit too -- my husband's last paycheck was $62 less than his previous one.

I'm so tired of IL -- can't wait to retire somewhere else someday!!

 

[FINFAN]

Actually, those numbers make perfect sense. In IL, our state income tax just went from 3% up to 5%. Thanks to the increase, the salary only went up by $600 rather than $1500.

Trust me, I didn't enjoy that tax increase on Friday either! It's quite short-sighted. I'm going to cut back my spending by at least that much, which is only going to make the economy even worse.

yep...no economic stimulus power coming from us either

 

[DisneyCrafter]

No offense, but it sounds like you didn't do your math right when you were planning for the raise (or I'm missing something). You expected him to bring home $1500 and instead it's only $600? If that's all going to taxes, that's a 60% hit. Either the raise isn't as big as you thought it was or something else is getting the money (401K? Health Insurance? Dental Insurance?).

As a PP said, the tax hike was 2% (3% to 5%) or 60%. So, my math isn't wrong. We're only seeing 40% of that raise ($600) because 60% ($900) goes to the state of IL. So, the raise covers the tax hike and leaves a little left over. ($25 a paycheck to be exact, as DH is paid bi-monthly) The $900 hike is covering his entire salary not just the raise-that may be where you're confused.

 

[DisneyCrafter]

yep...no economic stimulus power coming from us either

Exactly! Now, instead of us having a little more financial freedom, we must stay on the same strict budget that we have been for over a year now. How are we supposed to help businesses succeed (which would give MORE money in taxes to IL with our purchases) when we're now hurting b/c they raised taxes? The rich are getting richer, the poor are getting poorer and the middle class is struggling to survive while paying for the welfare of many who are taking advantage of the state. IMHO.