The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Federal tax withholding rates||Date: 1/18/2013 8:57 PM|
|Author: mazske||Number: 117392 of 124931|
I posted the below comment under this article.
Can anyone at this board explain to me why the IRS would change the tax rate withholding rates and increase them?
You mentioned the 2% increase back to the old rate for Social Security withholding's. I was expecting that, so no problem.
However, a surprise to me is my federal tax withholding went up quite a bit. I called my job's finance person and I was told that the 2013 tax withholding's tables increased the amount of taxes withheld across all rates.
What in the world is this? If my middle class tax rate is staying the same, why is the government doing this?
My goal is to get as close as possible to breaking even on my taxes. Meaning, I don't want a refund and I don't want to pay anything. If they withhold as much as they did, I'll get about a grand back in a refund. I don't want that.
That means the government is ripping us off and using our money as an interest free loan.
Is anyone else having their employer withhold more in federal tax? I work for a local government agency and I think they would have it right. The person says she follows the IRS tables to the T.
If this is really happening, which according to my first paycheck, it is, I plan to see if I can adjust my withholding amount to have them take out less.
If it's true the tables were increased, what in the world is happening? Can anyone explain that to me?
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