Arcadia Posted November 14, 2012 Share Posted November 14, 2012 (edited) Read this article on SFgate and the potential tax hike is more than my annual grocery budget :confused: In the worse case scenario, would that be for the tax year 2012 or 2013? I just don't want to get a big shock when I file at the beginning of next year as that would mean I owe IRS tax instead of getting money back. ETA: we are in the above $100k bracket just to put my question into perspective. We get less than $2k back every year. I just want to budget for next year and it is compounded by state tax likely to be rising. I read the whole article, just don't understand the jargon. ETA: Thanks to all who replied. We will have to budget for the increase in payroll tax than to start with. Edited November 14, 2012 by Arcadia in CA Quote Link to comment Share on other sites More sharing options...
Starr Posted November 14, 2012 Share Posted November 14, 2012 :svengo: Really, you don't think this will get political? :lol: Chocolate cupcakes please! Quote Link to comment Share on other sites More sharing options...
mandymom Posted November 14, 2012 Share Posted November 14, 2012 Read this article on SFgate and the potential tax hike is more than my annual grocery budget :confused: In the worse case scenario, would that be for the tax year 2012 or 2013? I just don't want to get a big shock when I file at the beginning of next year as that would mean I owe IRS tax instead of getting money back. It would go into effect in 2013 (returns submitted in April 2014). Quote Link to comment Share on other sites More sharing options...
flossboss Posted November 14, 2012 Share Posted November 14, 2012 I really don't know... I'm interested to see what others have learned/know about it, though. Scary!!! :-( Quote Link to comment Share on other sites More sharing options...
LizzyBee Posted November 14, 2012 Share Posted November 14, 2012 Nonpolitical answer - 2013. Quote Link to comment Share on other sites More sharing options...
StephanieZ Posted November 14, 2012 Share Posted November 14, 2012 If Congress doesn't pass (and get signed) legislation, I believe the pre-Bush-cuts tax rates would go into effect Jan. 1, 2013. However, unless you make over 250k, I think it is very unlikely that will happen (for more than a few weeks, anyway). Don't sweat it. It'll all be OK. Quote Link to comment Share on other sites More sharing options...
Wendi Posted November 14, 2012 Share Posted November 14, 2012 It's for tax year 2013, as far as I know. If your rates do go up, you'd want to change your withholding so you're not underpaying and hit with a huge bill. The payroll tax cut, which seems likely to disappear, means you'll see more taken out of your paycheck starting Jan. 1. (That's about 2%, I believe.) Most people in the news seem to be saying that the income tax rate will not be raised on those making under $200,000 ($250,000 for a couple). For people who make less than that, it seems like the main hit is the loss of the payroll tax cut. (Assuming that Pres. Obama's plan for letting the income tax rates increase for the over-$250K group, but letting the under-$250K group keep the current tax rate, is approved.) Wendi Quote Link to comment Share on other sites More sharing options...
SKL Posted November 14, 2012 Share Posted November 14, 2012 Some of the changes are for 2012, and some are for 2013. The Congress did not extend some of the benefits past 2011, yet. They might still do it. No way to know at this point. Quote Link to comment Share on other sites More sharing options...
Mrs Mungo Posted November 14, 2012 Share Posted November 14, 2012 I would suggest reading the article in its entirety since the main point of it is that it is unlikely all of the Bush and Obama tax cuts will be allowed to expire. Quote Link to comment Share on other sites More sharing options...
Wendi Posted November 14, 2012 Share Posted November 14, 2012 I think we may also be losing half of the child tax credit, down to $500. I haven't heard as much about that part of it, though. Wendi Quote Link to comment Share on other sites More sharing options...
QueenCat Posted November 14, 2012 Share Posted November 14, 2012 I would suggest reading the article in its entirety since the main point of it is that it is unlikely all of the Bush and Obama tax cuts will be allowed to expire. :iagree:The only thing I think one is likely to see in early 2013 is the payroll tax back to it's regular rate. We've been under a temporary cut for about 2 years, which is set to expire. This funds Social Security, so it can't be a long term cut. Quote Link to comment Share on other sites More sharing options...
Denisemomof4 Posted November 14, 2012 Share Posted November 14, 2012 :svengo: Really, you don't think this will get political? :lol: Chocolate cupcakes please! Chocolate cupcakes? I vote for Cupcake Vodka with Whipped Cream Vodka on top! Quote Link to comment Share on other sites More sharing options...
Pawz4me Posted November 14, 2012 Share Posted November 14, 2012 :iagree:The only thing I think one is likely to see in early 2013 is the payroll tax back to it's regular rate. We've been under a temporary cut for about 2 years, which is set to expire. This funds Social Security, so it can't be a long term cut. :iagree: Quote Link to comment Share on other sites More sharing options...
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