What are you going to do with your 2013 tax hike?

 

http://blog.heritage.org/2013/01/08/tax-changes-2013/

1. Payroll tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.”

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That

That article lists 13 tax increases. All but 2 of them affect only business, or individuals earning over $250,000 a year, by my calculations.

The one you don't mention maybe of more importance to some folks is number 11:

Reducing the income tax deduction for individuals’ medical expenses.

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4.2 to 6.2 per cent

Do you want your full retirement check or just 2/3 of it?

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That's what you get when

That's what you get when government continues spending to keep getting re-elected & not paying attention to balancing the budget.

I guess we need a balanced budget ammendment!

Fred

On wages only

spokybob wrote:

Do you want your full retirement check or just 2/3 of it?

I don't believe you pay any Social Security on your retirement check, only on your payroll. So it doesn't matter if it's 4.2% or 6.2% as it doesn't apply to the retirement part of your income.

It is a major increase for workers though and being worse that a flat rate (the marginal rate actually STOPS -- like goes to ZERO -- for higher wages) it affects the low and middle income folks the most.

Nothing...Uncle Sugar Is Taking It

"What Are You Going To Do With Your 2013 Tax Hike?"

Nothing since Uncle Sugar is going to get it before I ever see it.

They have to increase revenue somehow to be able to fund their self-voted pay raises. They spent all of the money and they have hit their credit limit again. So they will increase the limit again and then business as usual.

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OK.....so where the heck am I?

A Portion Of Your

SS is taxable. Ask a CPA.

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onestep

onestep wrote:

http://blog.heritage.org/2013/01/08/tax-changes-2013/

1. Payroll tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.”

The payroll tax increase isn't really an increase since it is actually going back to what it originally was (at least since 1990.) We've all just had a temporary reduction for the past two (2) years. It was never meant to be permanent.

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.

You don't have to ask a CPA, just ask me. smile It makes no sense at all. Why not just pay people on SS less if they're only going to take it back.

It wasn't always that way by the way. That started in 1984.

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If you don't know where you are going, you might wind up someplace else. - Yogi Berra

Tax yes, SS tax no.

rthibodaux wrote:

SS is taxable. Ask a CPA.

You need to ask the right question to a CPA. This thread is only about the SS tax that is withheld, not regular income tax. The correct answer is no increase in tax on SS benefits.

The increase just applies to SS tax withholding amount not regular tax.

There is

    no

SS tax on SS benefit payments, only regular tax.

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Never should've happened

jfossy wrote:
onestep wrote:

http://blog.heritage.org/2013/01/08/tax-changes-2013/

1. Payroll tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.”

The payroll tax increase isn't really an increase since it is actually going back to what it originally was (at least since 1990.) We've all just had a temporary reduction for the past two (2) years. It was never meant to be permanent.

As Democratic as I am, I really hate that cut occurred.

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it is just going back to the normal deduction

jfossy wrote:

The payroll tax increase isn't really an increase since it is actually going back to what it originally was (at least since 1990.) We've all just had a temporary reduction for the past two (2) years. It was never meant to be permanent.

I Agree.

Yes it is just going back to the normal deduction percentage that most of us paid for decades before we retired. All that was happening was that it was stealing money and underfunding what should have been going into the social security fund for future years SS solvency.

We have to quit stealing from and burdening future generations in order to fund unnecessary spending today.

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That's the least of our

That's the least of our problems, there will have to be a new payroll tax to fund Obamacare. Within 5 years there will be no money to fund Obamacare and it will be so well entrenched by then it will have to be funded. Hence a new payroll tax. Only question is how much and how it will be labeled - Ocare - AHCA or something totally unrelated. My guess it will be somewhere around the 6% mark, although it will start out lower. Politicians have learned that sticker shock is a bad thing.

I can hardly wait

Got a raise this year! - Yay!

All going to Uncle Sam - Boo!

sad

Blood from a stone.

spokybob wrote:

Do you want your full retirement check or just 2/3 of it?

Well when I hit retirement age, if I make it and they have not raised it to 85, there will be no money anyway. smile

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don't want

to burst anyone's bubble, but social security went up 4%, 2% from the employee, 2% from the employer. if you are self employed you saw the entire amount go up.

From SSA website

Quote:

For 2012, the maximum taxable earnings amount for Social Security (OASDI) taxes is $110,100. There is no limitation on taxable earnings for Medicare's Hospital Insurance (HI) taxes.

•Employee/Employer

•The Social Security tax rate for employees is 4.2 percent through the end of the year
•The Social Security tax rate for employers is 6.2 percent
•The Medicare tax rate is 1.45 percent for employees and employers

•Self-Employment

•The Social Security tax rate for self-employed is 10.4 percent through the end of the year. The Medicare tax rate is 2.9 percent for self-employed.

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Bottom line

However you want to state the reasons or cause, the bottom line is that my paycheck took a substantial hit.

I'm one of those "evil" state employees. That means that I already make about half what the same job pays in the private sector. On top of that, I have to take an unpaid day off each month. (That's THIS year's pay cut. Every year they come up with some new way to cut my pay by 5% whether it's "furlough Friday" or the current "Personal Leave Program")

I make less than the private sector, I get a 5% cut (repeatedly), and my check has now gone down further due to this SS change. Gotta love paying for programs to support those who DON'T WORK.

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I feel your pain.

thrak wrote:

However you want to state the reasons or cause, the bottom line is that my paycheck took a substantial hit.

I'm one of those "evil" state employees. That means that I already make about half what the same job pays in the private sector. On top of that, I have to take an unpaid day off each month. (That's THIS year's pay cut. Every year they come up with some new way to cut my pay by 5% whether it's "furlough Friday" or the current "Personal Leave Program")

I make less than the private sector, I get a 5% cut (repeatedly), and my check has now gone down further due to this SS change. Gotta love paying for programs to support those who DON'T WORK.

In Illinois, Gov Quinn & legislature is trying to figure out how to gut the state employee pensions. Of course, lawmakers and judges are exempt from the cuts, so as not to have conflict of interest in the new plan.
My sis took her pension & ran, just like a lot of folks in Wisconsin.
Of course they all blame previous administrations for underfunding the pension plans.

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Budget adjustment

Too bad Congress has not felt the need to put one together. But, even if they had, their solution seems to be to increase revenue, not cut spending.

What should the Government do instead?

I read today ---

Each American's share of federal government debt is about $45,000—15 percent higher than the per-capita debt of Greeks at almost $39,000. Even worse, American per-capita debt is expected to grow to almost $75,000 by 2020, only seven years away.

Why is government debt exploding? The simple answer is that the government is borrowing 40 cents of every dollar it spends.

To put this in perspective, the U.S. government is like a family with a $21,700 annual income spending $38,200 a year, with $16,500 of that put on credit cards—when the family already owes $142,710 on those credit cards!

For four consecutive years the federal government has amassed a trillion-dollar deficit. It took the United States 200 years to accumulate its first trillion dollars in debt. Now it takes about 10 months!

In September 2012 the total deficit passed $16 trillion— an amount exceeding the nation's entire GDP! How vast is that number? A stack of 16 trillion $1 bills would extend higher than Mt. Everest, past the space station, past the moon 239,000 miles away and back to Earth— twice.

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What the government should do!

ShenanigansNZ wrote:

I read today ---

Each American's share of federal government debt is about $45,000—15 percent higher than the per-capita debt of Greeks at almost $39,000. Even worse, American per-capita debt is expected to grow to almost $75,000 by 2020, only seven years away.

Why is government debt exploding? The simple answer is that the government is borrowing 40 cents of every dollar it spends.

To put this in perspective, the U.S. government is like a family with a $21,700 annual income spending $38,200 a year, with $16,500 of that put on credit cards—when the family already owes $142,710 on those credit cards!

For four consecutive years the federal government has amassed a trillion-dollar deficit. It took the United States 200 years to accumulate its first trillion dollars in debt. Now it takes about 10 months!

In September 2012 the total deficit passed $16 trillion— an amount exceeding the nation's entire GDP! How vast is that number? A stack of 16 trillion $1 bills would extend higher than Mt. Everest, past the space station, past the moon 239,000 miles away and back to Earth— twice.

Borrow more
Spend more
Print more dollar bills
Spend more
Borrow more
Then take the balance from our pockets.

Tax on SS

If you don't make over a certain amount (depends on your tax bracket) Social security is non-taxable. If you go over that amount, a part of it is taxable.
It all depends on "taxable" income. Certain income is non-taxable.

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taxes

bak276 wrote:

Borrow more
Spend more
Print more dollar bills
Spend more
Borrow more
Then take the balance from our pockets.

Nope you got the last bit wrong. They will take it only from the rich. Or so they said.....

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taxes

Timantide wrote:

If you don't make over a certain amount (depends on your tax bracket) Social security is non-taxable. If you go over that amount, a part of it is taxable.
It all depends on "taxable" income. Certain income is non-taxable.

Yep all the unclaimed income some make in tips, under the table cash deals and all that internet barter and trade!

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taxes

Timantide wrote:

If you don't make over a certain amount (depends on your tax bracket) Social security is non-taxable. If you go over that amount, a part of it is taxable.
It all depends on "taxable" income. Certain income is non-taxable.

Yep all the unclaimed income some make in tips, under the table cash deals and all that internet barter and trade!

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Nuvi 3790LMT, Nuvi 760 Lifetime map, Lifetime NavTraffic, Garmin E-Trex Legend Just because "Everyone" drives badly does not mean you have to.

Tax Hike in 2013

Any increase in pay go to taxes. Apart increase in price of items put additional pressure on middle class. It is wrong that middle class will not effected by tax hike as promised in election.

Just in

New forms to fill out when you hire people to do work on your house.

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What Are You Going To Do With Your 2013 Tax Hike?

I guess I am going to pay it.

Taxes

What I meant about non-taxable income was, Disability is a non-taxable income.
From what I understand tips are taxable.

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Don't sweat the petty things and don't pet the sweaty things!

Yes but

Timantide wrote:

If you don't make over a certain amount (depends on your tax bracket) Social security is non-taxable. If you go over that amount, a part of it is taxable.
It all depends on "taxable" income. Certain income is non-taxable.

Taxable yes (up to 80% of it in fact) may be taxed among your taxable income What you pay on it is the general income tax (Fed and State).
But you still don't pay Social Security Tax on your Social Security revenues.

Sad part...

It's not even over yet, only begun.

Then

Why do they take income tax from my SS check before I get it then? Not talking about FICA taxes.

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Witholding

Last Mrk wrote:

Why do they take income tax from my SS check before I get it then? Not talking about FICA taxes.

Because you opted in. They never witheld on my SS check. And I owed taxes because I drew down my 401k every year.

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I've already written

Hostess Twinkies off my list. Next is Starbucks coffee

Tips, taxes, SS Income

onestep wrote:
Timantide wrote:

If you don't make over a certain amount (depends on your tax bracket) Social security is non-taxable. If you go over that amount, a part of it is taxable.
It all depends on "taxable" income. Certain income is non-taxable.

Yep all the unclaimed income some make in tips, under the table cash deals and all that internet barter and trade!

Tips (at least in California) are taxed whether you declare them or not. The government just "assumes" a certain level of tips based on your hours worked and takes taxes out.

I believe (again in California at least) that, as long as your combined SS benefit and your earned wages don't exceed $3,000/month you don't take a hit in your SS benefits.

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partly true

thrak wrote:

I believe (again in California at least) that, as long as your combined SS benefit and your earned wages don't exceed $3,000/month you don't take a hit in your SS benefits.

The Feds will reduce the amount of SS you receive if you are both below the "full" retirement age and earn more than $3,000 per month. If you didn't take "early" retirement, then your benefit is not reduced because you have other income. That doesn't stop the state from taxing any and all income, they have to pay for giving all those free benefits somehow.

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You are right

You are right

I think what'll happen

Is that ultimately I will save less. I don't know what my take-home actually is, as do many of my coworkers. Tomorrow is a payday, but if it were a week from tomorrow, it's just the same.

I still advise people to stay the course, 17,500 into your 401k, and if you qualify an additional 5,000 to the roth. Sure, it's about an $87.50/check paycut, but the holiday was for only 2 years, that's why it was a holiday. Nobody likes it but life will go on, it has to.

onestep

onestep wrote:

http://blog.heritage.org/2013/01/08/tax-changes-2013/

1. Payroll tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.”

For a lot of folks it's exactly $87.46 per check. That's basically enough to lease a car, to pay much of a utility bill, etc. But the point is, it was a temporary cut. If we've worked say 20 yrs in our lives, well, 18 of them, we paid 6.2%.

I think if the government

I think if the government really cared about you and I and not lining their own wallets, they would offset the increase in Social Security taxes with a decrease in payroll taxes. It will never happen and it likely ignores other realities, but this issue pales in comparison to the other problems with the government.

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Not all

Strephon_Alkhalikoi wrote:

I think if the government really cared about you and I and not lining their own wallets, they would offset the increase in Social Security taxes with a decrease in payroll taxes. It will never happen and it likely ignores other realities, but this issue pales in comparison to the other problems with the government.

Not all states have a payroll tax. Texas doesn't.

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Concerning the payroll tax increase

Obama giveth and Obama taketh away.

As another stated the payroll tax decrease was temporary. My understanding is, the 2% increase in our take home pay was implemented to stimulate the economy. During the recent Presidential campaign Romney stated that he wanted to reduce taxes for all. However, I don’t believe that either candidate was willing to extend the 4.2 percent payroll deduction. Please feel free to correct me if I am wrong.