$5472

[AKguy1985]

It sucks.

 

[BikerHT]

Isn't this 2% 'increase' caused by allowing a 'tax-break' period to lapse? Serious question here...I thought we were given this 'break' from this particular 2% a few years back and now the 'break' is over. Or am I incorrect in my thinking here?

 

[tRidiot]

Isn't this 2% 'increase' caused by allowing a 'tax-break' period to lapse? Serious question here...I thought we were given this 'break' from this particular 2% a few years back and now the 'break' is over. Or am I incorrect in my thinking here?

That is correct. "Supposedly" there are not supposed to be any significant increase in middle- or lower-income earners except that 2%. But people seem to be reporting something more than that... I don't know, I'm 1099, too, so mine won't really be felt until later.

I have a much higher income than some of those being reported, but my "calculated" additional tax burden just from that 2% (not counting my increase in other taxes) is not that much higher than what people are reporting. I'm just not sure where that comes from... how to reconcile the difference people say they are losing?

 

[dlbleak]

from those that i have talked to, it appears to be more than 2% in most cases coming from their checks compared to 2012.

 

[hrdware]

I work in the payroll industry, so here is what happened:

The Employee SS Rate went from 4.2% to 6.2%, a 2% increase, however as was stated earlier, this was the lapse of a decrease that was supposed to help stimulate the economy.

Also, ever year the Federal Withholding Tables get adjusted for inflation and this year there were the high end bracket changes.

2011			2012
		Single
Amount	Rate		Amount	Rate
0-2150	0%		0-2200	0%
2150-10850	10%		2200-11125	10%
10850-37500	870 + 15% of amount over 10850		11125-38450	892.50 + 15% of amount over 11125
37500-87800	4867.50 + 25% of amount over 37500		38450-90050	4991.25 + 25% of amount over 38450
87800-180800	17442.50 + 28% of amount over 87800		90050-185450	17891.25 + 28% of amount over 90050
180800-390500	43482.50 + 33% of amount over 180800		185450-400550	44603.25 + 33% of amount over 185450
390500 and up	112683.50 + 35% of amount over 390500		400550-402200	115586 + 35% of amount over 400550
			402200 and up	116163.75 +39.6% of amount over 402200
		Married
0-8100	0%		0-8300	0%
8100-25500	10%		8300-26150	10%
25500-78800	1740 + 15% of amount over 25500		26150-80800	1785 + 15% of amount over 26150
78800-150800	9735 + 25% of amount over 78800		80800-154700	9982.50 + 25% of amount over 80800
150800-225550	27735 + 28% of amount over 150800		154700-231350	28457.50 + 28% of amount over 154700
225550-396450	48665 + 33% of amount over 225550		231350-406650	49919.50 + 33% of amount over 231350
396450 and up	105062 + 35% of amount over 396450		406650-458300	107768.50 + 35% of amount over 406650
			458300 and up	125846 + 39.6% of amount over 458300

So not only do we have the 2% increase, but each bracket got an increase as well. The bracket increase is the inflation adjustment that is done every year, but they also added the 39.6% bracket this year.