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Check your pay stubs if they are available.

I get paid bi-weekly, and my first pay check of 2013 is coming this Thursday (for which I am grateful, as always).

I have direct deposit and my statements are on our internal site. To my surprise, this one was already out there today.

My company is paying this check as if it is the first one of 2013 (YTD = this check) and it is proceeding as if the fiscal cliff solutions will NOT be resolved - that is, it has changed withholding to reflect the expiration of all tax cuts.

This means that in addition to the NJ SUI/SDI stuff that starts up in the beginning of the new year, as well as the increases in benefits payments, the taxes have gone up in a fairly noticeable way.

So regardless of the fiscal cliff, I have a fairly good idea of what would happen to my tax bill if things are not changed.

Personally, I'm somewhat okay with it, I don't like losing the income and it will make things tighter. But what else is new?

What I'm NOT okay with is not patching the AMT. I get tired of this drama Every. Single. Year. FIX IT, and then pass something that adjusts it for inflation from here on out. It's not that difficult. Having it reset to the 1950's or whatever it resets to every year is simply unnecessary and annoying.

But in the meantime, make sure to check your paystubs. Especially if the upcoming week is a pay week for you.

GSF
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So regardless of the fiscal cliff, I have a fairly good idea of what would happen to my tax bill if things are not changed.

That really should be "if tax cuts are not extended" - since the extension of the Bush tax cuts and the Medicare 2% cut were the temporary "change".
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that is, it has changed withholding to reflect the expiration of all tax cuts.

The IRS has not yet released 2013 withholding tables, so you might want to verify later this year that things were withheld correctly and adjust for the rest of the year accordingly. I'm not sure where your payroll provider would have gotten the withholding numbers; I think the IRS has instructed employers to use the 2012 tables, but I'm not sure of the requirements that employers have to follow.

WRJ
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So does this mean if you got a big tax refund last year & you haven't changed anything since, don't try to fix that yet?
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Did both the SS and Fed Withholding go up?

Do you know the percent of increase on the withholding? The SS should have gone up by 2% from 4.2% to 6.2%. Our payroll program supplier is not changing the Federal withholding only the SS. I've been wondering what others are doing.

Jean
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Do you know the percent of increase on the withholding? The SS should have gone up by 2% from 4.2% to 6.2%. Our payroll program supplier is not changing the Federal withholding only the SS. I've been wondering what others are doing.

As far as I can tell, the SS went up the most, but all of mine were adjusted somewhat because last year, I maxed out my health account at $5,000, and this year it's a $2,500 limit. So my taxable income has also changed, but it doesn't seem to be out of whack in terms of overall percentage. But the SS changed significantly, in line with the 2% increase.

GSF
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As far as I can tell, the SS went up the most, but all of mine were adjusted somewhat because last year, I maxed out my health account at $5,000, and this year it's a $2,500 limit. So my taxable income has also changed, but it doesn't seem to be out of whack in terms of overall percentage. But the SS changed significantly, in line with the 2% increase

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Thanks, it really sounds like they didn't take the withholding rate to the 2001 rates.

If congress doesn't extend at least part of the Bush tax cuts expect another increase later in the year.

FWIW, I think congress should be required to set the tax rates at least a year in advance.

Jean
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