Have you determined yet if there will be an impact on your family

[Barry Goldwater]

If the US tax rates go up again on Jan. 1st, 2011, as currently is likely to happen?

:bigear:

[Melinda in VT]

Nope. Haven't even thought about it yet. :D

 

Sufficient to the day is the evil thereof. :auto:

[sheryl]

If the US tax rates go up again on Jan. 1st, 2011, as currently is likely to happen?

:bigear:

 

 

Hey Barry,

 

I guess I can't help but to assume it "will" have an impact on everyone. My dh keeps a watchful eye on these matters. S <><

[kalanamak]

The projection I've seen won't effect me (I was at the bottom end of one bracket). I've already started doing overtime whenever I can as they are laying off at work.

[fairfarmhand]

try this site...

 

http://mytaxburden.org/

[*lifeoftheparty*]

.

[missesd]

try this site...

 

http://mytaxburden.org/

 

I don't understand it all... I put in our information and I am just confused. I will have to let hubby look at it. It may not affect is though because we make under $40k and have a family of 9.

[Dana]

try this site...

 

http://mytaxburden.org/

 

We do the best under the Obama plan on that site.

[QueenCat]

try this site...

 

http://mytaxburden.org/

 

Great resource! Thanks for sharing it.

[cdrumm4448]

Our taxes will increase $10,000 next year. Guess how happy I am about that.:glare:

[6packofun]

Same here, but I wish I understood all the options and how it all works. LOL

[2squared]

I don't understand it all... I put in our information and I am just confused. I will have to let hubby look at it. It may not affect is though because we make under $40k and have a family of 9.

 

The changes should impact almost everyone on this board since almost everyone has dependents. The child tax credit is scheduled to be reduced from $1000/dc to $500/dc. As it is a refundable credit now, it will have a sizable impact to larger families regardless of income. I assume the credit phases out at some point, but I don't know at what point.

 

Our taxes will go up over $3K, and most of that is the child tax credit reduction (5 dc x $500 child tax credit change = $2500).

 

Fortunately for us, our health care costs miraculously decreased and more than offset the federal tax increases for 2011. If we didn't have this health care windfall, the increased taxes would be hard to swallow.

Edited December 5, 2010 by 2squared

[Daisy]

According to that website....OUCH.

[Mrs Mungo]

We do the best under the Obama plan on that site.

 

Same here. It would go up around 2k if a new tax plan is not put in place.

[ELaurie]

and the tax cuts expire, the tax rate on capital gains will increase to your normal tax rate (e.g. 25% or 28%) rather than 15% which is the tax rate on capital gains now.

 

The alternative would be to sell your investments before the end of 2010.

[jld]

I'm pretty torn on the tax issue, because if we really want to get serious about our debt and deficits, we need to let the tax cuts go altogether. But I think lower income people really need not only the tax cuts already in place, but even more tax cuts. Wesley Clark said back in 2004 that people making less than $50k per year shouldn't pay taxes at all, because they need every dollar just to live. I agree with that.

 

I don't mind paying taxes, especially when the money is used wisely. I like living in a clean, safe country, and that is not free.

 

As far as the impact on my family . . . yes, we would pay more. We would adjust our budget accordingly.

 

I really wish these tax cuts had never gone through in the first place. They got people used to something that couldn't be responsibly continued.

[lisamarie]

Either way I will still get money back, it's just a matter of how much. That helps me to sleep a little better at night knowing we won't end up PAYING next year.:eek:

 

ETA: Last year we got back over $6000. I was SHOCKED. My Dad was shocked and thought I'd done our taxes wrong and insisted on going over my taxes. No matter the plan that gets passed, we will be getting significantly less back which will hurt. We use our tax money to pay for school books, our auto insurance (due in May so it has always been a convenient way of paying for it), and other major purchases. To not have that large chunk of cash coming in at once will mean we'll need to budget for these things in our monthly budget which will not be an easy task. Things are pretty tight as it is.

Edited December 5, 2010 by lisamarie

[lisamarie]

Wesley Clark said back in 2004 that people making less than $50k per year shouldn't pay taxes at all, because they need every dollar just to live. I agree with that.

 

I don't mind paying taxes, especially when the money is used wisely. I like living in a clean, safe country, and that is not free.

 

 

:iagree: It is a tricky thing. Being both under the 200% poverty line (and thus qualifying for many public assistance programs) and also being a Trustee for my village, I see both sides of the coin. Taxes are expensive. Paying for food, clothing and shelter is hard enough. But I also know that money is needed to pay for public safety and welfare. Without tax money, you can't keep up roads, snow plowing, public parks, police, fire, etc. I don't mind paying taxes to my village because I know that it is being used wisely. I have a much harder time paying federal and state taxes because I KNOW that my money is being used irresponsibly or against my moral preferences.

[snipsnsnailsx5]

I don't know either?

I know that we usually get a significant tax return. From what we heard from our tax agent, we may not get those child tax credits next year. That would reduce our tax return about in half.

[Elaine]

Ours will go up about $5500. :glare:

 

Thanks, Mr.Soetoro.

[Lawana]

Ours would go up about $5000.

ETA: We will likely have to give up something such as piano or karate.

[lula]

u

Edited December 5, 2010 by lula

[Celia]

Hmmm, I wonder if the day is coming when my darling American brother will stop gloating to me about about how much better his taxes are now than when he used to live up here north of the border!

[Mom in High Heels]

Ouch. If the tax cuts expire we'll have to pay several thousand dollars. We'd do slightly better under the Obama plan, than the other 2 plans.

[sagira]

I don't know either?

I know that we usually get a significant tax return. From what we heard from our tax agent, we may not get those child tax credits next year. That would reduce our tax return about in half.

 

No child tax credits? Holy cow. We've been counting on those, especially with a new baby on the way :(

[Mom0012]

I'm pretty torn on the tax issue, because if we really want to get serious about our debt and deficits, we need to let the tax cuts go altogether. But I think lower income people really need not only the tax cuts already in place, but even more tax cuts. Wesley Clark said back in 2004 that people making less than $50k per year shouldn't pay taxes at all, because they need every dollar just to live. I agree with that.

 

I don't mind paying taxes, especially when the money is used wisely. I like living in a clean, safe country, and that is not free.

 

As far as the impact on my family . . . yes, we would pay more. We would adjust our budget accordingly.

 

I really wish these tax cuts had never gone through in the first place. They got people used to something that couldn't be responsibly continued.

 

I don't really see how letting the tax cuts go are going to improve things when the government is spending the way it is. I seriously doubt that money will go to the deficit but rather to new "stimulus" spending. I'm not torn at all. If these tax cuts are not renewed, I don't know how we will pay our taxes this year.

 

Lisa

[jplain]

If the tax cuts expire, we'll owe almost $4,000 more for 2011.

Same here. We always over-withhold and then use our refund to pay for property tax and annual insurance policies (homeowner's, flood, and auto). So the expiration of tax cuts wouldn't cause any immediate stress, but I'd have to scramble later on to make up that $4K shortfall.

 

But honestly, I'd rather be forced to scramble if it is the only way to avoid extending the tax cuts for households making more than $250K per year. :glare:

[LisaKinVA]

Our taxes would go up, according to this, by about $4500, however, the changes in the health care tax bill also increase my taxes by $600, and reduce our ability to claim any medical expenses (the law will increase the amount you have to spend on medical to 10% of your income vs. the current 7% before you can itemize that -- we average about 10% right now, and I have another $6,000 surgery in January).

[mommaduck]

I hope the dickens the child tax credits don't expire. We use that towards our children's education.

[cathmom]

Just did the website and it's scary. If those tax cuts expire, it will be very bad for my family.

[Mommyfaithe]

acoording to this site, our taxes will go up the same both democratic and republican....only 1/2 that increase with the Obama plan.

[hsmom]

So explain this to me please. I did the little sheet and it states my republican and demorcratic plans are the same. What is this the amount we will have to pay in federal tax before we start to get a credit? If so ouch!

 

Now if the Bush one gets dropped way ouch!

[jld]

I don't really see how letting the tax cuts go are going to improve things when the government is spending the way it is. I seriously doubt that money will go to the deficit but rather to new "stimulus" spending. I'm not torn at all. If these tax cuts are not renewed, I don't know how we will pay our taxes this year.

 

Lisa

 

I hear you, Lisa. We've all gotten used to the tax cuts. We've put our national spending on our national credit card: two wars, the tax cuts, plus all the other spending -- Social Security, Medicare, and other federal expenditures. We all like the benefits, but we don't want to pay the bill. It's our human nature!

 

Btw, I don't think your taxes for 2010 are affected. I think the rates would go up for 2011.

 

The cost of the tax cuts is 3.7 trillion over the next ten years. Our national debt right now is 14 trillion. Do we want to add 3.7 trillion to that? It eventually has to be paid back, right? Wouldn't it make sense to start sooner rather than later?

 

Well, some people say no, not right now, not when so many people are hurting. They say that if we wait until the economy has improved, and unemployment is lower, we'll be able to tackle the deficit without so much suffering. I think that makes sense.

 

It's this tug of war between really seriously attacking the debt and deficit now or waiting until it would be less painful to do so that is making me feel torn. I think both approaches are responsible.

 

The stimulus is what some economists say has kept fire and police departments from being severely cut, and teachers from being laid off in great numbers. But it was not a big enough stimulus to really get the economy going again, at least according to some. With Repub victories last month, we may see an end to stimulus spending. We may see big cuts coming in state governments and the fed gov't, and maybe that's when we'll ask ourselves if the stimulus was so bad. Maybe it was. Maybe we'll find we don't need all those firefighters and teachers and police officers. Or maybe we won't recognize the nation anymore.

 

By the way, did you read in the NYT about how AZ has cut off some transplant patients in the name of budget cuts? (AZ Cuts Financing for Transplant Patients, 2 Dec. 2010) Maybe this is the future of America: if you can't pay hundreds of thousands of dollars for your child who needs a bone marrow transplant (mine did last year), or your husband who needs a liver, your loved one will just die. That's what cutting spending, without really thinking of the impact on people, can end up looking like.

Edited December 5, 2010 by jld
forgot a few words in the NYT article title

[cdrumm4448]

With Repub victories last month, we may see an end to stimulus spending. We may see big cuts coming in state governments and the fed gov't

 

I can only hope this is true.

 

I am not interested in paying for ridiculous stimulous spending that I vehemently opposed. Spending needs to be cut NOW.

[Mom0012]

I hear you, Lisa. We've all gotten used to the tax cuts. We've put our national spending on our national credit card: two wars, the tax cuts, plus all the other spending -- Social Security, Medicare, and other federal expenditures. We all like the benefits, but we don't want to pay the bill. It's our human nature!

 

Btw, I don't think your taxes for 2010 are affected. I think the rates would go up for 2011.

 

The cost of the tax cuts is 3.7 trillion over the next ten years. Our national debt right now is 14 trillion. Do we want to add 3.7 trillion to that? It eventually has to be paid back, right? Wouldn't it make sense to start sooner rather than later?

 

Well, some people say no, not right now, not when so many people are hurting. They say that if we wait until the economy has improved, and unemployment is lower, we'll be able to tackle the deficit without so much suffering. I think that makes sense.

 

It's this tug of war between really seriously attacking the debt and deficit now or waiting until it would be less painful to do so that is making me feel torn. I think both approaches are responsible.

 

The stimulus is what some economists say has kept fire and police departments from being severely cut, and teachers from being laid off in great numbers. But it was not a big enough stimulus to really get the economy going again, at least according to some. With Repub victories last month, we may see an end to stimulus spending. We may see big cuts coming in state governments and the fed gov't, and maybe that's when we'll ask ourselves if the stimulus was so bad. Maybe it was. Maybe we'll find we don't need all those firefighters and teachers and police officers. Or maybe we won't recognize the nation anymore.

 

By the way, did you read in the NYT about how AZ has cut off some transplant patients in the name of budget cuts? (AZ Cuts Financing for Transplant Patients, 2 Dec. 2010) Maybe this is the future of America: if you can't pay hundreds of thousands of dollars for your child who needs a bone marrow transplant (mine did last year), or your husband who needs a liver, your loved one will just die. That's what cutting spending, without really thinking of the impact on people, can end up looking like.

 

If the 3.7 trillion actually went towards reducing the deficit, I would feel much more positive about the tax cut changes. Looking at what has happened over the last couple of years, I have no reason to believe that that is what would happen, though. A big increase in taxes will be the final straw for our family and push me back into the workforce. The impact of me returning to a job that I hate rather than fulfilling my dream of homeschooling (when my husband is already working 12+ hours per day and would not be able to pick up any of the slack at home), would truly be devastating for our family.

 

Lisa

Edited December 5, 2010 by LisaTheresa

[jld]

If the 3.7 trillion actually went towards reducing the deficit, I would feel much more positive about the tax cut changes. Looking at what has happened over the last couple of years, I have no reason to believe that that is what would happen, though. A big increase in taxes will be the final straw for our family and push me back into the workforce. The impact of me returning to a job that I hate rather than fulfilling my dream of homeschooling (when my husband is already working 12+ hours per day and would not be able to pick up any of the slack at home), would truly be devastating for our family.

 

Lisa

 

((((((Lisa)))))

[Dana]

Btw, I don't think your taxes for 2010 are affected. I think the rates would go up for 2011.

 

This IS for 2010, so this will affect what you're paying for this year. Bit of a deadline to it...

[jld]

Are you sure, Dana? I just read on Bloomberg ("Obama Says Tax Cut Extension Must Include Jobless Benefits, Credit Plans") that higher tax rates would take effect on Jan. 1.

 

This article also said there will be a deal by the end of the week for the tax cuts to be extended, so I don't think Lisa or anyone else needs to worry . . .

[cathmom]

I believe jld is right. This tax season we will be doing our taxes for 2010. This would take effect the next tax season (2012) for 2011.

[Holly IN]

It will impact us greatly. Our taxes will increase by $2000 which we will have to pay during tax season. As of now, we do not have $2000 in the bank to pay in April.

 

:glare::glare::glare:

[jld]

You're going to be okay, Holly. All the latest news says the cuts will be extended.

[Dana]

Are you sure, Dana? I just read on Bloomberg ("Obama Says Tax Cut Extension Must Include Jobless Benefits, Credit Plans") that higher tax rates would take effect on Jan. 1.

 

This article also said there will be a deal by the end of the week for the tax cuts to be extended, so I don't think Lisa or anyone else needs to worry . . .

 

No. I must have misread & remembered wrong. Thanks for correcting me!

 

"If Congress does not act, the tax rates expire for everyone on Dec. 31, meaning an increase across the board. The rate in the lowest bracket would rise to 15 percent from 10 percent and in the highest bracket to 39.6 percent from 35 percent." from NY Times here.

 

So cuts expiring Dec 31 means we're good for taxes for 2010, but rates etc would change for 2011, meaning higher taxes when filling out forms in 2012.

[Soror]

I am certain that the taxes in my bracket would not raise. According to that site I would be the same under the rep or dem plan but have to pay 2700 more in taxes if all the cuts expired.

[wapiti]

So cuts expiring Dec 31 means we're good for taxes for 2010, but rates etc would change for 2011, meaning higher taxes when filling out forms in 2012.

 

In addition, that also means higher withholding from paychecks starting Jan. 1, 2011.

[Joyofsixreboot]

If the cuts expire we'll owe about $4000 more. Eeek!

[Kari C in SC]

We do the best under the Obama plan on that site.

 

Same here.

[lllll]

..

Edited December 30, 2012 by ksva

[Rebel]

Mine was best under the Obama plan (-2211) and the other 3 plans were the same with (-1870).

[cathmom]

My dh (who does our taxes every year and is wandering around the room here) says, "between higher tax rates and the AMT (Alternative Minimum Tax), if not adusted, it will cost our family an extra several thousand dollars or more". Here's another link about the AMT.

 

He's still talking: "AMT was put in place back in the '60's to prevent the top 155 wage earners from reducing their tax rates via excessive deductions. It wasn't adjusted for inflation and has been patched annually by the House Ways and Means Committee. If not corrected this year, it would impact about 25 million tax returns."

 

Aaaaand I have no idea what he just said. But there it is. :D

 

Kathy

 

The AMT *is* scary! I read about that problem maybe 5 years ago or so.

[Lady Florida.]

try this site...

 

http://mytaxburden.org/

 

If this site is accurate, our taxes will go up if the cuts expire. We'd pay exactly the same under either the Republican or Democratic plan (which is much less than if they expire).