Paycheck Size

[NMB2]

Hence why I'm getting a 2nd job as a firearms instructor... This is ridiculous... raising taxes on people who pay 50% of all taxes? Hell, raising taxes period! Tell me again how this is going to help the economy?

because it helps pay for frivolous .gov spending.

getting rid of .gov spending is not on the table.... so they increase our taxes.

[Rooskibar03]

Payday for us is tomorrow. I cranked my exemptions up to 10 before the end of the year in case we went all the way over the cliff. Looks like roughly 2 Benjamin's a month for me. Plus our contributions to Heathcare went up.

Its almost time to quit and get me an Obamaphone.

[Dave_L]

Yup, 2% less on my check as of today.

[hollohas]

Even though all Americans will see their paychecks get smaller, they will still believe the politicians when they say they didn't raise taxes on the middle class. Crazy.

[aaron734]

From the Tax Book:

Fiscal Cliff News
Last-Minute Fiscal Cliff Deal

Although the country technically went off the fiscal cliff at midnight on December 31,
2012, several hours later Congress and the President reached agreements that resolved
many of the most pressing tax issues, including extender legislation for 2012 and tax rate
provisions for 2013 and beyond.

The following is a summary of legislation contained in HR 8, the American Taxpayer Relief
Act of 2012, as passed by the Senate and the House of Representatives on January 1, 2013.
We will provide a detailed analysis of the legislation for our customers at no charge,
which will be available on our website Monday, January 7. We will also provide page up-
dates to TheTaxBook resulting from the new legislation. We will notify our customers via
email when the analysis is available.

Tax Rates

Income tax rates made permanent. For 2013 and beyond, the top individual income tax
bracket will increase from 35% to 39.6% for taxpayers with taxable income of $400,000 or
more ($450,000 or more Married Filing Jointly). Taxpayers with income below the thresholds
will not see an increase in tax rates.

Capital gain rates. Beginning in 2013, the maximum capital gains tax will increase from
15% to 20% for taxpayers with taxable income of $400,000 or more ($450,000 or more Mar-
ried Filing Jointly).

Payroll tax holiday. The 2% reduction in Social Security tax for employees and self-
employed individuals expired at the end of 2012 and will not be extended for 2013. An
employee’s Social Security portion of FICA will increase from 4.2% to 6.2%, with a cor-
responding increase in self-employment tax.

Employer withholding. On December 31, 2012, the IRS issued guidance on withhold-
ing, assuming expiration of the 2001 and 2003 tax rates and subsequent tax rate increases
at all income levels. The IRS instructed employers to begin using the new withholding
rates as soon as possible, but no later than February 15, 2013. Since this guidance was
issued before the new law, the IRS is expected to quickly release new withholding tables
to reflect the changes in tax rates.

Other taxes. The taxes contained in the new legislation are in addition to the 0.9% in-
crease in Medicare tax on earned income and the 3.8% increase in Medicare tax for un-
earned income for taxpayers with earned/unearned income in excess of $250,000 (MFJ),
$125,000 (MFS), and $200,000 (any other filing status) that were implemented as part of
the Affordable Care Act of 2010.

Alternative Minimum Tax (AMT)

The AMT “patch” is applied retroactively to January 1, 2012, and made permanent. For
2012, the AMT exemption amounts will be $50,600 for individuals and $78,750 for married
couples. The bill also allows nonrefundable personal credits to offset AMT.
Extenders

Child Tax Credit.

The $1,000 amount for each child for the Child Tax Credit has been
extended permanently.

Earned Income Credit.

The enhanced Earned Income Credit amounts have been ex-
tended for five years.

American Opportunity Credit.

The partially-refundable American Opportunity Credit
has been extended for five years.

State and local general sales taxes.

The deduction on Schedule A, Form 1040, for state
and local general sales taxes has been extended through 2013.
Educator expenses. The adjustment to income for educator expenses for primary and
secondary teachers has been extended through 2013.

Qualified principal residence indebtedness.

The exclusion from income for qualified
principal residence indebtedness has been extended through 2013.

Mortgage insurance premiums.

The deduction for mortgage insurance premiums as
mortgage interest on Schedule A, Form 1040, has been extended through 2013.
Tuition and fees. The adjustment to income for tuition and fees has been extended
through 2013.

Charitable distribution of IRAs.

The provision allowing tax-free distributions from
IRAs for charitable purposes has been extended through 2013.

AGI Phaseouts.

Phaseout on itemized deductions. Beginning in 2013, itemized deductions will begin
to phase out for taxpayers with AGI of $250,000 or more Single, $275,000 or more Head of
Household, or $300,000 or more Married Filing Jointly.

Phaseout of personal exemptions.

Beginning in 2013, personal exemptions will begin
to phase out for taxpayers with AGI of $250,000 or more Single, $275,000 or more Head of
Household, or $300,000 or more Married Filing Jointly.

Estate Tax.

Beginning in 2013, the estate tax rate will increase from 35% to 40% for estates that exceed
$5 million in value.

Energy Tax Extenders

A variety of energy tax credits have been extended for energy-efficient homes, alternative
fuel vehicle refueling property, and energy-efficient appliances.

Marriage Penalty

In 2001, legislation enacted marriage penalty relief to avoid a higher tax bill for a married
couple as compared to two single individuals. As evidenced by the $400,000/$450,000 in-
come thresholds for increased tax rates and standard deduction, the provisions for mar-
riage penalty relief expired beginning in 2013.

Unemployment Compensation

The temporary extension for unemployment benefits has been extended for one year.

Sequestration

The mandated sequestration spending cuts that were scheduled to take effect at the end
of 2012 were delayed for two months by the new legislation.

[Goodburbon]

I was surprised when obama allowed us the payroll tax cut. I am not surprised to see him take it back.

[electronman1729]

Funny now, Well not really

I will be making less money this year than last year.

[DavieD55]

That "tax the rich" BS is for everyone, we're all considered rich, as opposed to people from Kenya. I can't wait until this comes back on all the people who voted for all this.

[lex137]

I get paid once a week. We just got done on a big push job, was working 6-10. So my checks will be a lot smaller now that I'm back to 4-10!!!

[Bowtie]

I had no idea we had so many 1%ers on this board. See you all at the yacht club. FBHO