What are you cutting in your budget to absorb the Payroll Tax increase?

[I loveStitchnippyjon]

DH just got his first paycheck of the year. $62.50 less, which will be $125/month, or 1625/year. I don't know how we will re-budget for this, especially since DH is in real need of a new car soon.

 

[eliza61]

DH just got his first paycheck of the year. $62.50 less, which will be $125/month, or 1625/year. I don't know how we will re-budget for this, especially since DH is in real need of a new car soon.

what did you do when you got the extra? Think back to what you brought with the extra money and try to cut that out.

 

[seven dwarfs]

what did you do when you got the extra? Think back to what you brought with the extra money and try to cut that out.

For some people the extra money was/is going to the increased cost of food, insurance (both health and car/house), and everything else that has gone up in price. For some people on a small income this is a huge hit.

 

[okeydokey]

I know this is a big deal to many people, but remember back to folks complaining about government spending and debt. This is one way the government will be spending less. No more ss tax cut. It's got to come from somewhere, we'll lots of somewheres.

 

[eliza61]

For some people the extra money was/is going to the increased cost of food, insurance (both health and car/house), and everything else that has gone up in price. For some people on a small income this is a huge hit.

but that stuff was going up in price 2 years ago. so we had a budget then. I'm not saying this is not going to be a huge hit for some, I'm saying think back to your pre 2010 budget and see what would have been purchase.

Put it like this way. If we had not gotten the tax holiday food still would have gone up in price, gas still would have gone up.

What would you have done? what adjustments would you have made.

 

[DisneygirlTeacher]

To have $100 less a month hurts. After no raise for 5 years and then a $10 raise each paycheck this year (after insurance went WAY up), I am making less than 5 years ago. Of course, homeowners insurance went up, so now our house payment is $100 more a month. I keep pinching pennies and making everything stretch a little more. When the spending continues to decrease in all the stores and our economy gets even worse, maybe someone will wake up. The average working person doesn't have money to spend freely anymore. It's sad for every working family. $100 is a bill we could have paid or a week's worth of groceries. Everyone at work is upset and wondering why we get up every morning for less and less (but they expect more and more!) Good thing I love my job. But, it doesn't feel very good working for less than I've made in a long time. Ugh.

 

[donaldlovesdaisy]

Finally got to see a Jan LES after 450 dollars in increased income this Jan we get a whopping 40 dollars of that!!! We take the least amount of taxes out because we would rather not have the government hold onto our money and then maybe give it back to us at the end of the year. I thought the middle class would be spared I guess not! Oh and before anyone questions our financial status my husband is an officer in the Army and I am a SAHM so we are about as middle class as it gets. We don’t need the money to live comfortably but the extra income was going to be used to increase our monthly contribution to our children’s college funds and it sucks that it goes to taxes.

 

[vacationer1954]

I thought the middle class would be spared I guess not!

From what I heard it could have been a lot worse for us!

 

[DawnM]

Paying $410/mo for the SS tax is simply not possible. Even if you make $500,000 per year.

Go here, put in your salary, and see what the actual amount is.

http://blogs.wsj.com/economics/2013/01/01/payroll-tax-cut-expires-how-much-more-will-you-pay/

Finally got to see a Jan LES after 450 dollars in increased income this Jan we get a whopping 40 dollars of that!!! We take the least amount of taxes out because we would rather not have the government hold onto our money and then maybe give it back to us at the end of the year. I thought the middle class would be spared I guess not! Oh and before anyone questions our financial status my husband is an officer in the Army and I am a SAHM so we are about as middle class as it gets. We don’t need the money to live comfortably but the extra income was going to be used to increase our monthly contribution to our children’s college funds and it sucks that it goes to taxes.

 

[auralia]

Finally got to see a Jan LES after 450 dollars in increased income this Jan we get a whopping 40 dollars of that!!! We take the least amount of taxes out because we would rather not have the government hold onto our money and then maybe give it back to us at the end of the year. I thought the middle class would be spared I guess not! Oh and before anyone questions our financial status my husband is an officer in the Army and I am a SAHM so we are about as middle class as it gets. We don’t need the money to live comfortably but the extra income was going to be used to increase our monthly contribution to our children’s college funds and it sucks that it goes to taxes.

Now imagine being a lower enlisted in your husband unit with 2 kids and you can't find a job because of the constant moving and being worried about putting groceries on the table let alone a college fund. (No this is not me dh is an e7 but I worry about them because I'm a worrier.)

 

[donaldlovesdaisy]

Paying $410/mo for the SS tax is simply not possible. Even if you make $500,000 per year.

Go here, put in your salary, and see what the actual amount is.

http://blogs.wsj.com/economics/2013/01/01/payroll-tax-cut-expires-how-much-more-will-you-pay/

Our federal taxes also increased but thanks for trying to call me a liar!

 

[donaldlovesdaisy]

Now imagine being a lower enlisted in your husband unit with 2 kids and you can't find a job because of the constant moving and being worried about putting groceries on the table let alone a college fund. (No this is not me dh is an e7 but I worry about them because I'm a worrier.)

Luckily there are many programs in place to help them out with food and things like that. I am surprised being the wife of an E7 you weren't aware of that. A lower enlisted soldier should never have to worry about putting food on the table and if he is he needs to get in touch with his chain of command and find out about the many things to help like the commissary vouchers.

 

[angierae]

Got my first (biweekly) check of 2013 today. It's about $15 less.

Yeah, not going to notice that.

 

[DawnM]

Oh good grief. No one called you a liar. I just said the SS tax could not be $410 per month.

You also stated you have the max withholdings so that you keep your money until tax time. I think something is wrong with the numbers and you need to take a look.

Dawn

Our federal taxes also increased but thanks for trying to call me a liar!

 

[KBoopaloo]

Got my first check this week and was a bit worried since I had heard from a couple of people that his/her check had gone down was more than they anticipated. Mine was exactly what I expected and is basically just a bit less than what I was taking home before the "holiday" went into effect (thanks to slightly higher health insurance costs since then).

 

[joedplumber]

Still waiting for me and my DW to receive out first 2013 paycheck. Fingers crossed!!

 

[RitaE]

Still waiting for me and my DW to receive out first 2014 paycheck. Fingers crossed!!

You'll probably be waiting ... about 12 months for that first 2014 check.

We've received our first 2013 checks but DH's came with a note from the HR department that Life Insurance rates were not held correctly and the next check would hopefully correct the error and then have the correct amount. And they don't have raises in. I don't think I'll have a true amount check from him until February sometime.

 

[mistysue]

Since it came up earlier in this thread, is there some specific way to prepare for the PPACA? Somebody said to just wait until the Obamacare taxes. I didn't think that was exactly a tax so much as you have to buy a policy if you don't have one. So if you have insurance, not really any prep to do, right?

 

[mm1971]

We're losing about $200 a month. Trying to figure out where I'll cut. Unfortunately, vacation/entertainment funding seems to be the first on the chopping block . Thankful that we have "fluff" to cut out of our budget. I'm feeling for those who don't right now . --Katie

Not to say anyone did anything they weren't supposed to, but the original cut was to get everyone spending and it looks like it worked.

When they cut the tax, we took that money and added it to my 401K every pay period. That way we never became dependent on that money (as it was not in the check) and used it to save for our future.

I do understand that a lot of people didn't really have that option as they were struggling already. Most people we know have cut cell phone bills and cable. That is usually where I look first since these are nice to have, but usually not critical like food and utilities. In the past, we have also cut expenses by eating home and not going out to dinner at restaurants.

 

[joedplumber]

You'll probably be waiting ... about 12 months for that first 2014 check.

We've received our first 2013 checks but DH's came with a note from the HR department that Life Insurance rates were not held correctly and the next check would hopefully correct the error and then have the correct amount. And they don't have raises in. I don't think I'll have a true amount check from him until February sometime.

Lol.
2013.

Go Broncos!!!