New taxes for 2013

[pam]

I haven't seen my paycheck or what I'll be bringing home on Friday. But I'm worried. Everyone I've talked to has seen their Federal taxes increased by almost double. Even my son said his was about double.

Has anyone else seen this yet? Pretty soon I won't even be able to afford to work.

[EarlJibbs]

The middle class average will lose approx $100.00 a month off of the Social Security raise in taxes. Everything else on mine looked the same. But who isnt going to miss $1,200 a year? I know I will.

[pam]

I don't even know what's considered middle class anymore. I feel like I'm at the poverty level. :)

When they disbanded my position in November, I had to accept another position to stay with the company. It increased my commute by about 40 miles round trip. About $200 more a month for gas. Now to get hit higher with additional taxes. Pretty soon I won't be able to afford to work.

[Guest]

Mine went up. Significantly. That's $100 per week folks. And I'm still trying to convince my company I don't need healthcare insurance.

I read an article - can't remember where it is now - that if you make under $45,000, you're better off quitting your job and applying for the government entitlement programs available.

[EarlJibbs]

I think the Median income is $55,000. Obama and Romney both suggest that $200,000 (individual) to $250,000 (Dual) and bove are considered wealthy.

So about $55,000 - $200,000 ($250,000) is middle. Pretty big spread if you ask me.

I read an article that regardless of these definitions and regardless of what you make, a lot people consider themselves middle class. If can put food on my table and we are happy, that must mean I am not truely poor right? Which I tend to agree with a little. My attitude has never been that of self remorse that I was poor. Rather, we made do and were taken care of and happy, therefore not poor, not rich, but middle.

I know that veers of the subject matter at hand a little, sorry.

[EarlJibbs]

Mine went up. Significantly. That's $100 per week folks. And I'm still trying to convince my company I don't need healthcare insurance.

I read an article - can't remember where it is now - that if you make under $45,000, you're better off quitting your job and applying for the government entitlement programs available.

The $100 per week is because of insurance?

[Jenamarie]

The middle class average will lose approx $100.00 a month off of the Social Security raise in taxes. Everything else on mine looked the same. But who isnt going to miss $1,200 a year? I know I will.

My understanding is this is the end of the SS "Tax Holiday" which was always meant to be temporary unless congress renewed it, which they didn't. It was a 1 or 2 year (can't remember which) "holiday" of having only 4% instead of 6% withheld for Social Security.

[EarlJibbs]

My understanding is this is the end of the SS "Tax Holiday" which was always meant to be temporary unless congress renewed it, which they didn't. It was a 1 or 2 year (can't remember which) "holiday" of having only 4% instead of 6% withheld for Social Security.

Correct. Not an increase technically, but a lapse of the holliday. Remember the good times I suppose.

[Guest]

The $100 per week is because of insurance?

Nope. Just payroll taxes. The great and wonderful world of 1099 contracts... you get to be the employer and the employee... Double-whammy. I don't carry health insurance. I don't need it. But... seems like I'm not gonna have a choice there, so... I expect to spend a lot more.

You know... people think... you are rich, Anatess. You make lots of money. But see, nobody ever thinks that what make you rich is not how much money you make. What makes you rich is how much money you get to keep. Do you know that my dad's cancer drug is $7,000/month? Yep. Now, tell me again how rich I am...

Edited January 9, 2013 by anatess

[Guest]

My understanding is this is the end of the SS "Tax Holiday" which was always meant to be temporary unless congress renewed it, which they didn't. It was a 1 or 2 year (can't remember which) "holiday" of having only 4% instead of 6% withheld for Social Security.

You are absolutely correct. It's not an increase but just an end to the temporary SS lower rate.

But, for the ones receiving these paychecks, yesterday you got $100, now you don't. Whether you call it an increase or an end to the holiday becomes irrelevant. There's a lesson there somewhere... and it goes in the theme of, what the government giveth, the government can taketh away...

[Anddenex]

Nope. Just payroll taxes. The great and wonderful world of 1099 contracts... you get to be the employer and the employee... Double-whammy. I don't carry health insurance. I don't need it. But... seems like I'm not gonna have a choice there, so... I expect to spend a lot more.

You know... people think... you are rich, Anatess. You make lots of money. But see, nobody ever thinks that what make you rich is not how much money you make. What makes you rich is how much money you get to keep. Do you know that my dad's cancer drug is $7,000/month? Yep. Now, tell me again how rich I am...

If you can afford a drug that is more than I make a month, then yes you are filthy rich young lady!

[Guest]

If you can afford a drug that is more than I make a month, then yes you are filthy rich young lady!

I wish I could afford it! It's more than I make a month too! My dad was smart - he saved lots of money when he was younger. Is it enough to pay his cancer meds? Well, if we plan to kill him off in 2 years, sure... We're all pitching in to allow my dad to live a long, long time. Now, how about when I'm the one who needs cancer meds? Oh right... I don't need savings... I can always just hope some insurance company is going to have mercy on my soul... Do you see what I'm getting at?

Edited January 9, 2013 by anatess

[pam]

I think the Median income is $55,000.

Then I am for sure at the poverty level.

[BenRaines]

Wife's check went down $100 on the SS tax correction. Back to what it should have been all along.

Ben Raines

[EarlJibbs]

Then I am for sure at the poverty level.

It is a good thing our self worth isnt based on how much we make. The world sure would have us think that.

[Guest]

It is a good thing our self worth isnt based on how much we make. The world sure would have us think that.

My dad always instilled in my head - it's not how much you make, it's how much you spend. And he was right. I had more money when I was making $7.50/hour 20 years ago than I do now making a lot more than that.

My self worth is based on whether I can navigate my way through life with as much freedom intact. Because, you know, the moment I swipe that credit card, I got a noose around my neck.

[Backroads]

I read an article - can't remember where it is now - that if you make under $45,000, you're better off quitting your job and applying for the government entitlement programs available.

That's absolutely terrifying. We make under 45$ combined. I would feel horrible applying for government programs.

[dahlia]

The middle class average will lose approx $100.00 a month off of the Social Security raise in taxes. Everything else on mine looked the same. But who isnt going to miss $1,200 a year? I know I will.

I get paid on the 1st and got paid right after the holiday. I must be more than middle class because they freakin' took BEAUCOUP money from my check. Way more than 100$. I knew it was coming, but boy. Thank goodness my car is almost paid for and I'll be able to keep that money - unless Obama finds a way to take that, too.

[Just_A_Guy]

I read an article - can't remember where it is now - that if you make under $45,000, you're better off quitting your job and applying for the government entitlement programs available.

Anatess, you were probably looking for something along the lines of this. The takeaway bit of info: If you're a single mother in PA, it's better to earn $29K and collect government bennies than it is to earn $69K and be independent. Or, to put it graphically:

Pretty soon I won't be able to afford to work.

Pssst . . . Pam, that's not a bug. It's a feature. There's nothing more dangerous to a politican, then a voter who doesn't need what the politician is offering.

[bytor2112]

Funny isn't? How Obama would not consider lowering the federal income tax rate, but he championed the temporary reduction in payroll tax (social security). Why?....well to stimulate the economy and help "working Americans" of course. So, why not lower the income tax rates instead of reducing tax receipts for a program that all agree is nearing collapse?

Taxing higher earners does nothing for the economy, except harm and the rouse that the government is going to use the additional revenue to pay off debt is laughable...Democrat or Republican.

Sad...when even the like's of Russia has a flat tax...13% (i think).

[miztrniceguy]

Mine is down $150 counting the insurance increase and the higher withholding.

[bytor2112]

Nope. Just payroll taxes. The great and wonderful world of 1099 contracts... you get to be the employer and the employee... Double-whammy. I don't carry health insurance. I don't need it. But... seems like I'm not gonna have a choice there, so... I expect to spend a lot more.

You know... people think... you are rich, Anatess. You make lots of money. But see, nobody ever thinks that what make you rich is not how much money you make. What makes you rich is how much money you get to keep. Do you know that my dad's cancer drug is $7,000/month? Yep. Now, tell me again how rich I am...

While you can't get around the double whammy of payroll tax for the self employed, you could organize as an LLC and file as Sub Chapter S and then only pay it on your "salaried portion of income. The "profit" (K-1) would be taxed as income and not hit with the payroll tax.

[bytor2112]

Oh and don't forgot, after $110,000 the payroll tax goes away. Mine is already gone...how bout yours?

[Backroads]

I don't even want to see my upcoming check. My husband can't afford to lose $100 each from our paychecks.

Sigh. I'm trying to take this in stride and see how we can tighten our belts.

[NeuroTypical]

Everyone I've talked to has seen their Federal taxes increased by almost double.

Has anyone else seen this yet?

Yes. I was paid on the 6th, and my taxes went up by around $100/month. Expiring Bush tax cuts, and also the expiring Pres. Obama Social Security cut.