over the fiscal cliff

[bdcp]

They can still fix this and enact it retroactively. Fortunately for us, we make sure we have more coming in than going out, even though we have some debt so we won't "need" the cuts to survive, but our paying off debt has made us not as far ahead as we thought we were. We also never, ever count on a refund, nor do we plan it to get one. The Gov has enough of our money, we don't need to let them hold more of it.

 

[FINFAN]

well, we are in the 17% as well...it hurts. the "13" of 2013 is feeling kinda unlucky already However, steps have to be taken, belts tightened even more and as travel is out of the question for us I am grateful for the technology of skyping to be in touch with our DD who moved across the country in November. She is fortunate to have a great job out of school to have taxes affect, others are not as lucky. She will be hit for over 16%, which when starting out and trying to pay rent, student loans and food? Freedom isn't free.

 

[lisalis]

The most interesting thing that I noticed was that as I went up from where our income is, the percentage increase lowered. People making less than us had an even higher percentage increase. Ours is just over 19%. Thankfully, my husband is getting a pay increase this year that will just offset the taxes.

I just hope that they can figure out how to cut spending in addition to these increases. It frustrates me that our family works hard to live on a budget & live without many things that our neighbors have or do so that we do not live in debt. I feel that our country should do the same.

 

[bdcp]

Ours will go up about 14%. That means about three hundred a month for us-two incomes so the pain will be spread out.

 

[FINFAN]

The most interesting thing that I noticed was that as I went up from where our income is, the percentage increase lowered. People making less than us had an even higher percentage increase. Ours is just over 19%. Thankfully, my husband is getting a pay increase this year that will just offset the taxes.

I just hope that they can figure out how to cut spending in addition to these increases. It frustrates me that our family works hard to live on a budget & live without many things that our neighbors have or do so that we do not live in debt. I feel that our country should do the same.

I noticed that too....a married couple making 40,000 gets hammered at around 25% (depending on dependents etc) It won't take long for the economy to tank if folks are going to be dealing with such large tax increases. No pay raise here~ not this year, last year, the year before...not a fun pattern.

 

[StitchesGr8Fan]

My DH works for a payroll company and the SS increase has gone in to effect for the clients running payroll for the rest of the week

 

[Planogirl]

I noticed that the lower incomes get hit with a larger percentage too. That's just wrong.

It sounds like the Senate and President's office are close to agreeing on a plan. Now we'll just have to wait and see how the House reacts. (I hope that this isn't political - I take no sides and have no comment on individuals!)

 

[gracie1]

My DH works for a payroll company and the SS increase has gone in to effect for the clients running payroll for the rest of the week

I'm glad you posted this, because we were also told that the increases have gone in effect for payroll this week as well.

 

[usnuzuloose]

What is the increase for SS?

 

[Allison]

I'm glad you posted this, because we were also told that the increases have gone in effect for payroll this week as well.

If the payroll is paid after today, that is true for the social security rate.

 

[Allison]

What is the increase for SS?

Technically it is an expiration of a temporary (2 year) decrease. It goes from 4.2 percent of social security taxable wages to 6.2 percent.

 

[ajh88]

My SS tax went from $70 to $370. Doesn't seem like only a 2 percent increase to me. It is in effect for my paycheck this week, the first of the new year. I will have to go back and see what the tax was over all if last year. $600 a month feels like a lot to me!

 

[imapoohbear12]

My check is missing about 100 bucks booooooo. What a joke they are how can they let this happen. Disgrace

 

[Allison]

My SS tax went from $70 to $370. Doesn't seem like only a 2 percent increase to me. It is in effect for my paycheck this week, the first of the new year. I will have to go back and see what the tax was over all if last year. $600 a month feels like a lot to me!

Did you earn over the maximum taxable amount of about $110,000 in 2012?

 

[4luv2cdisney]

Before anyone panics, take a look at what the chart is saying your current tax liability is. Mine is way off! My actual tax liability for 2011 was much less than it's stating my "current tax" is. I'm thinking this isn't very accurate.

Also, I believe some tax cuts will be implemented. I certainly wouldn't run out and file my taxes tomorrow

 

[rockawaybeachgirl]

My SS tax went from $70 to $370. Doesn't seem like only a 2 percent increase to me. It is in effect for my paycheck this week, the first of the new year. I will have to go back and see what the tax was over all if last year. $600 a month feels like a lot to me!

There are two different things happening in 2013 that could affect your paycheck: one relates to social security taxes and the other to income taxes.

Without action, the Bush tax cuts expire at midnight and we revert to the Clinton -era levels. I am 99% sure that a deal will happen thisnweek, that will be applied retroactively, that will preserve the cuts for anyone making around $400k or less, or families making less than $450k. Both sides know that not doing this will be political suicide. As a matter or fact, that part was already agreed- it's the other elements of the cliff that are holding bit up. Once that happens, there will be no change to federal income tax liability for those under the threshold.

The second change relates to social security tax and it WILL affect everyone. It has 2 effects: paychecks in 2013 will decrease by 2% of your gross pay (less pre, but not post- tax dedecutions). Also, the amount of money that you pay SS taxes on will go up. For 2012, once you made $110'100, you stopped paying SS tax. For 2013' the amount goes up to $113k. This portion of the change will not decrease each check, but you will pay it longer into the year.

The SS related changes WILL happen IMHO.

 

[Allison]

I agree the change in the ss rate will happen. I have not heard any discussion of extending the cut in the rate.

 

[ajh88]

There are two different things happening in 2013 that could affect your paycheck: one relates to social security taxes and the other to income taxes.

Without action, the Bush tax cuts expire at midnight and we revert to the Clinton -era levels. I am 99% sure that a deal will happen thisnweek, that will be applied retroactively, that will preserve the cuts for anyone making around $400k or less, or families making less than $450k. Both sides know that not doing this will be political suicide. As a matter or fact, that part was already agreed- it's the other elements of the cliff that are holding bit up. Once that happens, there will be no change to federal income tax liability for those under the threshold.

The second change relates to social security tax and it WILL affect everyone. It has 2 effects: paychecks in 2013 will decrease by 2% of your gross pay (less pre, but not post- tax dedecutions). Also, the amount of money that you pay SS taxes on will go up. For 2012, once you made $110'100, you stopped paying SS tax. For 2013' the amount goes up to $113k. This portion of the change will not decrease each check, but you will pay it longer into the year.

The SS related changes WILL happen IMHO.

This makes sense. I never felt like $70 was enough, but it still surprised me to see $370! Yes, I was over $110K but can't recall when I went over. Thanks for the explanation!

 

[acourtwdw]

According to that chart, the lower your income, the higher percent of change you will have. Not sure if that chart is accurate or not but it will make it harder for those of us that are barely making it now.....

 

[rockawaybeachgirl]

This makes sense. I never felt like $70 was enough, but it still surprised me to see $370! Yes, I was over $110K but can't recall when I went over. Thanks for the explanation!

You're welcome. If you look back at your paychecks there should be one where it looked like you got around a 4% raise - that's when it happened.

Based on the amounts you motioned I could back into it but I'm already enough of a geek talking about taxes on New Year's Eve